
Ford Motor Co. in Dearborn today released its third quarter (Q3) financial results, showing a net loss of $826 million despite posting a 10 percent increase on quarterly revenue to $39.4 billion.
“We’re asking ‘What’s best for customers?’ in everything we do,” says Jim Farley, president and CEO of Ford. “Winning for customers is driving a re-founding of the company through Ford+, with high ambitions for quality, innovation, profitability, and growth across all our businesses — making smart choices about how we deploy capital even as we learn and adapt.”
Ford made a strategic decision during Q3 to shift its capital spending from the level four advanced driver assistance systems (ADAS) being developed by Argo AI to internally developed level two plus and level three technology.
Earlier, Argo AI had been unable to attract new investors. Accordingly, Ford recorded a $2.7 billion non-cash, pretax impairment on its investment in Argo AI, resulting in the $827 million net loss for Q3.
Adjusted earnings before interest and taxes were $1.8 billion, higher than the $1.4 billion to $1.7 billion the company estimated in September. The results were influenced by two things Ford signaled in mid-September: supply shortages that left about 40,000 built, but awaiting needed parts and about $1 billion in higher-than-expected supplier payments. Ford expects to complete the vehicles and sell them to dealers during Q4.
Ford’s Q3 operating cash flow was $3.8 billion. Adjusted free cash flow was $3.6 billion, reflecting strong automotive cash generation. The company ended the quarter with cash and liquidity of $32 billion and $49 billion, respectively.
Ford Pro sustained its leadership with commercial customers during the quarter. In the U.S., customer preference again drove a company market share of more than 40 percent for full-size commercial trucks and vans — with E-Transit representing 90 percent of the full-size EV van market so far this year.
The business continued to build out its affordable, always-on fleet-management software, including for small businesses. In Europe, where the company’s year-to-date commercial share exceeded 15 percent, Ford Pro is the regional segment leader in two- and one-ton vans as well as pickup trucks.
Ford’s overall business in Europe was profitable in the third quarter as supply chain constraints began to ease and wholesale vehicle shipments were up 23 percent from Q2.
Ford’s International Markets Group and South America units sustained their profitability following restructurings to de-risk the businesses and play to their strengths. IMG — which has launched the all-new Ranger at three of its four plants, with Silverton, South Africa, following soon — has gained more than a point of midsize-pickup market share through the first nine months of the year.
In China, Ford posted a loss in the quarter, attributable to investments in EVs. The Lincoln brand, a solid source of profitability in the country, gained sequential share in the premium internal combustion engine segment.
Ford Credit delivered another strong quarter, with earnings before taxes of nearly $600 million.
The company now anticipates full year adjusted EBIT of about $11.5 billion. That would be about 15 percent higher than in 2021.
To read DBusiness’ current cover story profiling Jim Farley, called “Lightning Speed,” visit here.