At Extreme Investor Network, we pride ourselves on providing unique and valuable insights into the world of business news. Today, we are excited to discuss Ford’s recent performance and earnings guidance for 2024.
In a recent announcement, Ford Motor guided to the lower end of its 2024 earnings forecast, projecting adjusted EBIT of about $10 billion. This guidance came as the company slightly exceeded Wall Street’s expectations for the third quarter. Despite concerns about softening demand and rising vehicle inventory levels, Ford has maintained its forecast for adjusted free cash flow between $7.5 billion and $8.5 billion.
According to Ford CFO and Vice Chair John Lawler, the company’s focus remains on cost and quality, with significant potential for improvement. While Ford has achieved $2 billion in material rate and manufacturing cost cuts, higher inflationary and warranty costs have offset some of these gains.
In the third quarter, Ford performed as follows compared to estimates:
– Adjusted earnings per share: 49 cents vs. 47 cents expected
– Automotive revenue: $43.07 billion vs. $41.88 billion expected
Despite these results, Ford’s shares were down over 4% in after-hours trading, following a disappointing second quarter. However, the company’s third-quarter results were driven by strong performances in its commercial and fleet business, known as “Pro,” as well as its traditional operations under “Ford Blue.”
Additionally, Ford’s electric unit, “Model e,” reported reduced losses compared to the previous year, largely due to lower volumes. Overall, Ford’s net income for the third quarter was $896 million, with adjusted EBIT increasing by approximately 16% year over year.
We will continue to monitor Ford’s performance and provide updates on any developments. Stay tuned to Extreme Investor Network for the latest news in the world of business and finance.