passage After a loss of 2 billion 152 million dollars the previous year, it made a net profit of 4 billion 329 million dollars in 2023, an 11% increase in revenues to $176,191 million, and the profitability of combustion engine vehicles increased. Adjusted earnings before interest and taxes (EBIT) amounted to $10 billion 416 million, the same figure as in 2022.
Ford Blue, the unit responsible for the production and sales of internal combustion engine vehicles, increased its revenues by 8% to $101.9 billion (on top of a 3% increase in sales) and earned $7.462 billion with a 7.3% margin. . Meanwhile, revenue at Ford Pro, which provides services to businesses as well as commercial vehicles, rose 19% to $58.1 billion, with sales revenue reaching $7.222 billion with a 12.4% margin.
Produced and marketed by Ford Model e electric vehicles (VE) continued to accumulate losses even though its sales and revenue rose 20% and 12%, respectively, as it earned $5.9 billion but posted negative earnings of $4,701 million in 2022, nearly double that of 2022. Media, Ford President and CEO Jim Farley said that what matters now is the number of electric vehicles sold and that the electric vehicle segment requires patience. “It’s going to take longer than we expected 18 months ago. But we’re seeing huge geographic differences in adoption,” Farley said.
Farley also said this Hybrid vehicles “will play an increasingly important role” The industry’s shift from internal combustion vehicles to EVs is partly because they offer profit margins similar to gasoline cars, “much higher than the margins of electric cars.” “The journey to EVs is inevitable for us and we have a bright future in electric vehicles,” concluded Farley.
At another point in the teleconference, Ford’s CEO insisted that the company is focused on: reduce cost from electric vehicles. “We need the electrical industry to be able to stand on its own two feet. And we need to be profitable because we know our competitors (in China and Tesla) are,” Farley said.
Despite the losses from electric vehicles, Ford CFO John Lawler said in his statement that this was a good investment for the company. “As one of the pioneers of pickup trucks, SUVs and electric commercial vehicles, the insight we receive from our customers is invaluable, especially as we develop next-generation EVs that will wow customers and make them profitable a year after launch,” he explained.
In the last quarter of the year, which was affected by the six-week strike of the United Automotive Workers (UAW), Ford posted a net loss of $526 million, while its revenue increased by 4% to $46 billion. Ford attributed last quarter’s figures for accounting expenses of about $1.7 billion to changes in workers’ retirement and benefit plans. The company also said Tuesday it expects 2024 revenue to be between $10 billion and $12 billion.
Ford announced this Tuesday regular dividend of 15 cents per share and additional dividend of 18 cents per share in the first quarter. “The goal is to increase the adjusted return on invested capital from 14% in 2023 to approximately 20% over the next two years,” Lawler said.