Industry watchers saw Ford Brothers reporting optimism for the company’s path ahead as the second quarter closed. The automaker posted a record net profit of 667 million dollars, marking an 18.9 percent rise from the same period in 2021 and topping analyst expectations. Ford attributed the gains to sharply higher vehicle prices, which lifted quarterly revenue to 40.19 billion dollars, an increase near 50 percent year over year. Domestic sales rose 1.8 percent in the quarter, and production of SUVs and pickups rose despite ongoing chip shortages, underscoring Ford’s ability to meet demand with a stronger product mix.
However, the quarter also carried a note of caution. A 2.4 billion dollar loss from Rivian stock weighed on results, and the company faced headwinds from the first three months of the year. In the first half of 2022, Ford reported a net loss of 2,443 million dollars compared with a net profit of 3,823 million dollars in the first half of 2021.
Revenue for the first six months reached 74,666 million dollars, up 18.5 percent, while adjusted EBIT rose to 6,048 million dollars for the period, a 21.8 percent increase. The second quarter alone showed a dramatic swing in profitability, with EBIT of 3,722 million dollars, up 253.4 percent from a year earlier.
Regionally, Ford disclosed an earnings before interest and taxes of 4.86 billion dollars in North America on sales of 51.4 billion dollars for the six months. In South America, EBIT stood at 154 million dollars with revenue around 1.3 billion dollars. Europe contributed 217 million dollars in EBIT on 12.7 billion dollars in revenue. In China, the company logged a loss of 174 million dollars on revenue of 1 billion dollars. Rest of world operations delivered 156 million dollars in EBIT on 3,700 million dollars in revenue.
The company reaffirmed its full-year outlook, targeting EBIT between 11.5 billion and 12.5 billion dollars, signaling a 15 to 25 percent rise over 2021. Ford also announced a dividend of 15 cents per share for the upcoming quarter, matching a commitment to returning capital to shareholders.
CEO Jim Farley commented on the quarterly performance during a post-result conference call, praising the Ford team for delivering strong results amidst supply chain constraints and dynamic economic conditions. He emphasized the restructuring plan that will organize Ford into three divisions: Model E for electric vehicle production, Ford Blue for traditional internal combustion engine cars, and Ford Pro for commercial customers. Farley described the potential in electrification as a major growth opportunity and noted a strategic emphasis on software-driven products that can extend beyond the lifespan of current hardware. He highlighted the ongoing challenge of battery costs as a central focus for the company’s transition. — Ford Q2 results 2022