Ford Mustang on display on the NY Auto Show, April 6, 2023.
Scott Mlyn | CNBC
DETROIT — Ford Motor on Thursday raised its 2023 guidance after second-quarter earnings significantly beat Wall Street expectations, boosted by strong pricing and demand for the automaker’s traditional vehicles at the same time as adoption of EVs took hold slower than the corporate expected.
Ford increased its full-year adjusted earnings forecast to a variety of between $11 billion and $12 billion, up from a previous forecast $9 billion and $11 billion. It also upped its expected adjusted free money flow to a variety of $6.5 billion to $7 billion from earlier guidance of $6 billion.
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There was pressure on Ford to boost its guidance after crosstown rival General Motors raised its yearly guidance Tuesday for the second time this 12 months.
Ford finance chief John Lawler said vehicle demand and pricing were “holding up” higher than the corporate anticipated at the start of the 12 months for its traditional businesses. Nevertheless, he said, electric vehicle adoption is going down more slowly than the corporate expected, partly because of upper costs.
Ford’s traditional business operations, often known as Ford Blue, earned $2.31 billion throughout the quarter, while it’s Ford Pro industrial business earned $2.39 billion. Its “Model e” electric vehicle unit lost $1.08 billion from April through June.
The corporate said it now expects to lose $4.5 billion on the EV business this 12 months, widening losses from roughly $3 billion a 12 months earlier.
Here’s how Ford did during the second quarter, compared with what Wall Street expected based on average estimates compiled by Refinitiv:
- Adjusted earnings per share: 72 cents vs. 55 cents expected
- Automotive revenue: $42.43 billion vs. $40.38 billion expected
The automaker reported net income of $1.92 billion, or 47 cents per share, substantially up from a 12 months earlier when it earned $667 million, or 16 cents per share.
Ford said its adjusted earnings before interest and tax, or adjusted EBIT, jumped to $3.79 billion, up from $3.72 billion a 12 months ago. Its adjusted margin dropped to eight.4%, from from 9.3% within the year-ago period, amid increased production and sales.
Total revenue for the quarter was $45 billion, up 12% from $40.2 billion a 12 months earlier.
It is the second quarterly report by which the automaker broke down its financial results by business unit as a substitute of by region.
— CNBC’s Michael Bloom contributed to this report.