Ford Motor misses by $0.15, reports revs in-line; FY21 adjusted EBIT at midpoint of guidance range; sees FY22 adjusted EBIT of $11.5-12.5 bln
- Reports Q4 (Dec) earnings of $0.26 per share, excluding non-recurring items, $0.15 worse than the S&P Capital IQ Consensus of $0.41; revenues (automotive revenue) rose 6.3% year/year to $35.3 bln vs the $35.63 bln S&P Capital IQ Consensus.
- FY21 company adjusted EBIT of $10.0 billion at midpoint of $9.6 billion to $10.6 billion guidance range, after reclassifying Q1 Rivian gain.
- FY22 Outlook:
- Lawler said Ford expects full-year 2022 adjusted EBIT to be even stronger -- $11.5 billion to $12.5 billion, an increase of 15% to 25% over 2021.
- The high end of the adjusted EBIT range equates to a margin of 8% which, if achieved, would be one year earlier than the company's previous target.
- Adjusted free cash flow for the year is expected to be $5.5 billion to $6.5 billion.
- Underlying assumptions for 2022 include: Significantly higher profits in North America, along with collective profitability in the rest of the world as the company benefits from its extensive global redesign. Continued variability in supplies of key components, with full-year vehicle wholesales nonetheless being up about 10% to 15%, with a high single- to low double-digit decline in Q1, reflecting supplier shortages related to COVID shutdowns and semiconductors.
- "Financial performance is obviously critical," said President and CEO Jim Farley. "We're also proud that customers see how Ford is taking EVs mainstream, and have already ordered or reserved more than 275,000 all-electric Mustang Mach-E SUVs, F-150 Lightning pickups and E-Transit commercial vehicles -- and we're breaking constraints to deliver every one of them as fast as we can." Customers made Ford the No. 2 seller of electric vehicles in the U.S. in 2021, what Farley called "an important early step toward eventually being the true EV leader." Earlier, he said that the company will double worldwide EV manufacturing capacity to at least 600,000 by 2023 -- and for fully electric vehicles to represent at least 40% of its product mix by 2030."