📊🚗 Ford beat expectations for Q3 but expects weaker profits for 2024!
On Monday, Ford reported $F results that show a slight beat to Wall Street expectations .
Still, the automaker lowered the high end of its full-year profit forecast, similar to European automakers. It now expects adjusted EBIT of about $10 billion, instead of the original range of $10 billion to $12 billion. The division's commercial and fleet activities contributed significantly to this "Ford Pro" and the traditional manufacturing division "Ford Blue". Electric Vehicle Division "Model e" however, reported a loss of $1.22 billion, reflecting lower sales and continued cost pressures.
💹 Earnings per share: Adjusted earnings came in at 49 cents per share, beating expectations 47 cents.
📈 Automotive Revenue: Beat expectations to reach $43.07 billion (vs. $41.88 billion expected).
📉 S tocks: Since the beginning of the year, the stock price has fallen by more than 13 %.
According to the CFO John Lawler has Ford continues to focus on reducing costs and improving quality to remain competitive and grow. Although the company has been able to achieve a $2 billion cost reductions in materials, transportation and manufacturing, higher inflation and warranty costs remain a challenge. Lawler noted that while some warranty costs were down from the previous quarter, the results Ford could have been even better.
Ford also continues to grow globally - for example, in China, where the company has managed to achieve sales in excess of US$600 million, allowing the carmaker to plan for increased exports from that region. 🚀
What to expect next?
Ford is ready for the year 2025 with a well-structured inventory mix: at the end of the third quarter, it had 91-day inventory of vehicles including 68-day supply for the dealerships. This move is part of a strategy to stabilize and meet demand at the beginning of the year 2025, despite the growth in inventory.
🛠️ Long-term strategy: Despite the challenges of electromobility, the CEO Jim Farley assures investors of confidence in hybrid and electric models Ford, while Ford gradually focusing on lower-cost hybrid segments. Farley sees room for growth in other commercial activities and important markets.
Good cost management and productivity improvements are essential to get Ford to maintain a long-term growth trajectory.
How do you view Ford's stock relative to its European competitors?
