Ford Motor Co. in Dearborn’s 2023 second quarter financial results showed that the company increased revenue by 12 percent year-over-year to $45 billion, allowing Ford to raise its full-year 2023 guidance for adjusted EBIT to between $11 billion and $12 billion.
The automaker also reported that net income ($1.9 billion) and adjusted EBIT ($3.8 billion) also were higher and that its cash and liquidity remained “persistently strong.”
Ford Pro’s popularity with commercial customers produced a 22 percent revenue growth and EBIT more than doubled to $2.4 billion, an improvement of 15 percent. Additionally, software repair services sales were also up.
Ford’s financial report stated that the Ford Blue gas and hybrid business posted higher wholesale and revenue producing $2.3 billion in EBIT. The company also said that the all-new global Ranger pickup second quarter sales showed that the vehicle is even more popular and profitable.
Ford Model e revenue was up 39 percent. Scaling and competitive pricing further helped Ford establish a strong presence in next-generation EVs, which are now expected to reach 600,000 run rate in 2024.
“The shift to powerful digital experiences and breakthrough EVs is underway and going to be volatile, so being able to guide customers through and adapt to the pace of adoption are big advantages for us,” says Jim Flarley, CEO of Ford. “Ford+ is making us more resilient, efficient and profitable, which you can see in Ford Pro’s breakout second-quarter revenue improvement (22 percent) and EBIT margin (15 percent).”
Ford net sales increased more than 11 percent. Worldwide demand for Ford’s lineup of trucks, SUVs, and commercial vans pushed second-quarter revenue up 12 percent, to $45 billion. Quarterly net income was $1.9 billion, nearly three times higher than in the year-ago period.
Ford reported that cash flow from operations and adjusted free cash flow continued to be strong, at $5 billion and $2.9 billion, respectively. So was Ford’s balance sheet, with nearly $30 billion in cash and more than $47 billion in liquidity at the end of the second quarter, both of them up sequentially and year-over-year.
Customer deliveries of the all-new Super Duty work truck had an immediate effect on Ford Pro’s performance, with quarterly U.S. sales of Super Duty up 28 percent. Global revenue from both gas-powered Transit and electric E-Transit commercial vans also was up.
Commercial customers are also beneficiaries of Ford’s digital systems and rapidly expanding software and services. Ford Pro accounts for more than 80 percent of the company’s nearly 550,000 paid software and services subscribers, to date, including systems for fleet management, telematics, and EV charging.
Ford Blue — which engineers, makes and sells gas and hybrid vehicles, including specialized derivative models — improved its performance in every region.
The popularity and pricing power of Ford Blue’s products helped account for growth in wholesales and revenue, and $2.3 billion in EBIT. Segment initiatives to improve quality and reduce costs are expected to further raise its effectiveness and profitability over time.
In May, Ford Blue and Ford Pro together launched the redesigned 2023 Ford Ranger truck, which is a vital part of Ford’s global pickup leadership and is sold in more than 180 markets.
Revenue from Ford Model e’s first-generation electric vehicles increased 39 percent in the second quarter; sequentially, revenue more than doubled. But in recent weeks, dealer lots representing multiple automakers have largely seen EV sales slow due to high costs, range anxiety, slow charging times, and other factors.
“The near-term pace of EV adoption will be a little slower than expected, which is going to benefit early movers like Ford,” says Farley. “EV customers are brand loyal and we’re winning lots of them with our high-volume, first-generation products; we’re making smart investments in capabilities and capacity around the world; and, while others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away.”
Farley says that Ford now expects to reach a 600,000-unit EV production run rate during 2024 and will maintain flexibility, balancing growth and profitability, on the way to attaining a two million run rate.
Ford, citing increasing production capacity at the Rouge Electric Vehicle Center in Dearborn, continued work on cost scaling and improving prices for EV battery raw materials, Ford announced lower suggested retail prices for the all-electric F-150 Lightning pickup truck.
In other Ford news, Ford Performance debuted the all-new Mustang Dark Horse R. The vehicle was engineered to offer the most demanding track enthusiasts a turn-key race car ready to compete in the all-new Mustang Challenge spec racing series, just for Mustang Dark Horse R and sanctioned by the International Motor Sports Association (IMSA).
The Mustang Dark Horse R is powered by a new, fourth-generation 5.0-liter Coyote V8, and is the third Dark Horse-based racing derivative to be unveiled this summer, joining its place alongside the Mustang GT3 and the Mustang GT4.
“Mustang Dark Horse R bridges the gap between Dark Horse and Mustang GT3 and GT4,” says Mark Rushbrook, global director of Ford Performance Motorsports. “Production-based Mustang vehicles have raced from the very beginning, all the way back to winning the 1964 Tour de France, even. Dark Horse R offers our passionate customers not just an attainable, factory-built race car, but also a racing series to compete with other Mustang enthusiasts.”
“Mustang Dark Horse R has been developed with Mustang racing enthusiasts top of mind,” says Jim Owens, manager of Ford Mustang Marketing. “Ford Performance leaned into countless areas of expertise developed through years of racing the Mustang and honed in on an aggressive yet approachable package for customers to pick up and play with.”
Dark Horse R is designed for track use only, but also shares several components with the road-going version. These include a Flat Rock Assembly Plant-provided body, 500-plus horsepower 5.0-liter V8 engine, Tremec 3160 manual transmission, Torsen limited slip differential with 3.73 final drive ratio, aero and Brembo rear brake calipers/rotors. It’s also upgraded with a wide array of track-focused equipment.
Mustang Dark Horse R was created to compete in the new, single-make Mustang Challenge series, which will start in 2024, running a 10 to 12-race calendar in conjunction with a mix of five to six yet-to-be-announced North American sports car race weekends. All cars will compete on racing slicks developed specifically for Mustang Challenge by our series partners at Michelin.
“Mustang Dark Horse R owners will have the opportunity to race and test their driving skills with other Mustang enthusiasts at some of the world’s most incredible tracks,” says Rushbrook.
