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Who's Ford stock just paid for their Bronco? Strong Q3 results reported
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Who's Tesla stonks paid for their Bronco?
Not me... but I'm sure someone's has.
Not me... but I'm sure someone's has.
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Ford Achieves Strong Q3 Results, Raises Full-Year 2021 Guidance; Says Financial Flexibility Enables Ample Investment in Ford+ Plan
Meanwhile, Ford’s revenue, net income, adjusted earnings before interest and taxes, cash flow from operations, and adjusted free cash flow were all sharply higher from the second to the third quarter of 2021, driven by significant increases in semiconductor availability and wholesale vehicle shipments from Q2.
“This is the most exciting Ford lineup I’ve seen, but what matters is that customers love our new products and services – and we’re just getting started,” said President and CEO Jim Farley. “The trajectory of our business gives us huge confidence in Ford+, and we’re obsessively turning the plan’s promise into reality.”
Third-quarter revenue of $35.7 billion was down moderately from the same quarter a year ago. Semiconductor availability remains a challenge, but markedly improved from the second quarter, propelling sequential increases in wholesale shipments and revenue of 32% and 33%, respectively.
Ford’s adjusted EBIT was $3.0 billion, with an adjusted EBIT margin of 8.4%. Third-quarter cash flow from operations was $7.0 billion and adjusted free cash flow was $7.7 billion, both up considerably from the second quarter largely because of the higher wholesales and profitability.
The company ended Q3 with $31.5 billion of cash and $47.4 billion in total liquidity.
Improvement in semiconductor supplies in North America in the third quarter helped lift regional product shipments 67% from Q2. That increased volume pushed the business unit’s EBIT margin to 10.1%. Through the first three quarters of 2021, North America’s EBIT margin was 9.0%, approaching the full-year 2023 regional target of 10%.
Ford remains what Farley calls “spring loaded” for growth in North America as semiconductor volumes increase, with a 50% sequential increase in orders – to more than 100,000 – for vehicles already on the market, excluding those for the all-new Bronco.
Profitability improved in Europe, where Ford remains the No. 1 commercial vehicle brand, as the company works to deliver a 6% EBIT margin by 2023.
In China, which is progressing with its own turnaround, retail sales of luxury Lincoln-brand vehicles were up 24% year-over-year. During the quarter, the company opened the first of a series of direct-to-customer Ford Select city stores to focus on growing demand for BEVs in China. Last week, Ford began local production of its all-electric Mustang Mach-E in Chongqing.
South America posted its eighth straight quarter of year-over-year better EBIT, as the business approaches a break-even run rate. The International Markets Group had another solid quarter on the back of the highly popular midsized Ranger pickup, while initiating a major restructuring of Ford’s business in India.
In Mobility, Ford, Argo AI and Walmart last month said they are collaborating on a “last mile” autonomous-vehicle delivery service for customers in Miami; Austin, Texas; and Washington, D.C. – cities where Ford and Argo AI already have operations. The program will use Ford self- driving test vehicles equipped with Argo AI’s self-driving system. Farley said that Ford “fully supports” Argo AI’s aspiration to access public capital.
Ford Credit achieved another exceptional quarter with $1.1 billion in earnings before taxes, as vehicle auction values continue to be at near-record levels.
Investing in Ford+, Resuming Quarterly Dividend
Farley said the Ford+ plan combines foundational strengths and evolving new capabilities to create superior experiences for customers – and profitable growth for Ford – in electric vehicles, commercial vehicles and services, connected services and autonomy/mobility.
According to CFO John Lawler, the company expects to invest $40 billion to $45 billion in strategic capital expenditures between 2020 and 2025 – including one-half of the more than $30 billion it plans to devote exclusively to BEVs during that same period.
Ford’s recently announced battery-electric vehicle initiatives include:
“We believe the improving trajectory of our business and financial flexibility it’s creating will provide more than enough resources to fully fund the Ford+ plan, plus additional strategic opportunities that present themselves along the way,” said Lawler.
Ford’s board of directors voted to reinstate a regular quarterly dividend starting in Q4. The fourth-quarter dividend of 10 cents per share on outstanding common and Class B stock will be paid on Dec. 1 to shareholders of record at the close of business on Nov. 19.
Outlook
The underlying strength of Ford’s business, said Lawler, supports an increase in the company’s guidance for full-year 2021 adjusted EBIT to between $10.5 billion and $11.5 billion.
Rivian, in which Ford holds an equity stake, has announced that it plans to conduct an initial public offering of shares in the company. In the event Rivian completes an IPO, Ford will record any gain on its investment in Rivian and subsequent adjustments as special items. Accordingly, Ford will recast its pre-IPO non-cash adjusted EBIT gain of about $900 million from the first quarter of 2021 as a special item.
Ford’s expectations for fourth-quarter adjusted EBIT assume an increase in wholesale shipments from the third quarter, combined with a continued healthy mix of vehicles sold and net pricing, and continued strong, but sequentially somewhat lower, results from Ford Credit.
There is no change in Ford’s guidance for full-year 2021 adjusted free cash flow of $4.0 billion to $5.0 billion.
Lawler said Ford typically does not provide next-year financial guidance in October and won’t do so at this point for 2022. Directionally, he said, the company has momentum from and expects to build on its strong performance in 2021. External ambiguities for 2022 could include:
Ford plans to provide financial guidance for 2022 when it reports fourth-quarter and full-year 2021 financial results on Feb. 3.
# # #
About Ford Motor Company
Ford Motor Company (NYSE: F) is a global company based in Dearborn, Michigan, that is committed to helping build a better world, where every person is free to move and pursue their dreams. The company’s Ford+ plan for growth and value creation combines existing strengths, new capabilities and always-on relationships with customers to enrich experiences for and deepen the loyalty of those customers. Ford designs, manufactures, markets and services a full line of connected, increasingly electrified passenger and commercial vehicles: Ford trucks, utility vehicles, vans and cars, and Lincoln luxury vehicles. The company is pursuing leadership positions in electrification, connected vehicle services and mobility solutions, including self-driving technology, and provides financial services through Ford Motor Credit Company. Ford employs about 184,000 people worldwide. More information about the company, its products and Ford Motor Credit Company is available at corporate.ford.com.
Contacts:
Media
T.R. Reid
1.313.319.6683
[email protected]
Equity Investment
Community
Lynn Antipas Tyson
1.914.485.1150
[email protected]
Fixed Income
Investment
Community
Karen Rocoff
1.313.621.0965
[email protected]
Shareholder
Inquiries
1.800.555.5259 or
1.313.845.8540
[email protected]
Conference Call Details
Ford Motor Company (NYSE: F) and Ford Motor Credit Company released their 2021 third-quarter financial results at 4:05 p.m. ET on Wednesday, Oct. 27. Following the release, Jim Farley, Ford president and chief executive officer; John Lawler, Ford chief financial officer; and Marion Harris, CEO, Ford Motor Credit, will host a conference call at 5:00 p.m. ET to discuss the results. The presentation and supporting materials will be available at shareholder.ford.com. Representatives of the investment community will have the opportunity to ask questions on the call.
Ford Third-Quarter Earnings Call: Wednesday, Oct. 27, at 5:00 p.m. ET
Toll-Free: 877.870.8664
International: +1.970.297.2423
Passcode: Ford Earnings
Web: shareholder.ford.com
Replay
Available after 8:00 p.m. ET on Oct. 27 and through Nov. 3
Web: shareholder.ford.com
Toll-Free: 855.859.2056
International: +1.404.537.3406
Conference ID: 7768099
The following applies to the information throughout this release:
- Generates quarterly revenue of $35.7 billion, net income of $1.8 billion, adjusted EBIT of $3.0 billion; North America auto EBIT margin of 10.1%
- Increases guidance for full-year 2021 adjusted EBIT to between $10.5 billion and $11.5 billion
- Expects cash flow over current planning period to be more than sufficient to fund growth priorities; announces resumption of regular stock dividend in fourth quarter
Meanwhile, Ford’s revenue, net income, adjusted earnings before interest and taxes, cash flow from operations, and adjusted free cash flow were all sharply higher from the second to the third quarter of 2021, driven by significant increases in semiconductor availability and wholesale vehicle shipments from Q2.
“This is the most exciting Ford lineup I’ve seen, but what matters is that customers love our new products and services – and we’re just getting started,” said President and CEO Jim Farley. “The trajectory of our business gives us huge confidence in Ford+, and we’re obsessively turning the plan’s promise into reality.”
Third-quarter revenue of $35.7 billion was down moderately from the same quarter a year ago. Semiconductor availability remains a challenge, but markedly improved from the second quarter, propelling sequential increases in wholesale shipments and revenue of 32% and 33%, respectively.
Ford’s adjusted EBIT was $3.0 billion, with an adjusted EBIT margin of 8.4%. Third-quarter cash flow from operations was $7.0 billion and adjusted free cash flow was $7.7 billion, both up considerably from the second quarter largely because of the higher wholesales and profitability.
The company ended Q3 with $31.5 billion of cash and $47.4 billion in total liquidity.
Improvement in semiconductor supplies in North America in the third quarter helped lift regional product shipments 67% from Q2. That increased volume pushed the business unit’s EBIT margin to 10.1%. Through the first three quarters of 2021, North America’s EBIT margin was 9.0%, approaching the full-year 2023 regional target of 10%.
Ford remains what Farley calls “spring loaded” for growth in North America as semiconductor volumes increase, with a 50% sequential increase in orders – to more than 100,000 – for vehicles already on the market, excluding those for the all-new Bronco.
Profitability improved in Europe, where Ford remains the No. 1 commercial vehicle brand, as the company works to deliver a 6% EBIT margin by 2023.
In China, which is progressing with its own turnaround, retail sales of luxury Lincoln-brand vehicles were up 24% year-over-year. During the quarter, the company opened the first of a series of direct-to-customer Ford Select city stores to focus on growing demand for BEVs in China. Last week, Ford began local production of its all-electric Mustang Mach-E in Chongqing.
South America posted its eighth straight quarter of year-over-year better EBIT, as the business approaches a break-even run rate. The International Markets Group had another solid quarter on the back of the highly popular midsized Ranger pickup, while initiating a major restructuring of Ford’s business in India.
In Mobility, Ford, Argo AI and Walmart last month said they are collaborating on a “last mile” autonomous-vehicle delivery service for customers in Miami; Austin, Texas; and Washington, D.C. – cities where Ford and Argo AI already have operations. The program will use Ford self- driving test vehicles equipped with Argo AI’s self-driving system. Farley said that Ford “fully supports” Argo AI’s aspiration to access public capital.
Ford Credit achieved another exceptional quarter with $1.1 billion in earnings before taxes, as vehicle auction values continue to be at near-record levels.
Investing in Ford+, Resuming Quarterly Dividend
Farley said the Ford+ plan combines foundational strengths and evolving new capabilities to create superior experiences for customers – and profitable growth for Ford – in electric vehicles, commercial vehicles and services, connected services and autonomy/mobility.
According to CFO John Lawler, the company expects to invest $40 billion to $45 billion in strategic capital expenditures between 2020 and 2025 – including one-half of the more than $30 billion it plans to devote exclusively to BEVs during that same period.
Ford’s recently announced battery-electric vehicle initiatives include:
- A new F-Series truck plant in Tennessee and three BlueOval SK joint-venture battery plants in Kentucky and Tennessee – the latter raising Ford’s annual battery capacity in the United States to more than one million units
- Doubling to 80,000 planned yearly production volume of Ford’s impending all-electric F-150 Lightning pickup in response to exceptional customer demand
- A collaboration with Redwood Materials for closed-loop battery recycling in the U.S.
- Construction of Ford’s BEV manufacturing center in Germany, and at the company’s JV in Turkey to build E-Transit commercial vans for customers in Europe, and
- Converting Ford’s transmission plant at Halewood on Merseyside in the United Kingdom to produce power units for all-electric passenger and commercial vehicles in Europe.
“We believe the improving trajectory of our business and financial flexibility it’s creating will provide more than enough resources to fully fund the Ford+ plan, plus additional strategic opportunities that present themselves along the way,” said Lawler.
Ford’s board of directors voted to reinstate a regular quarterly dividend starting in Q4. The fourth-quarter dividend of 10 cents per share on outstanding common and Class B stock will be paid on Dec. 1 to shareholders of record at the close of business on Nov. 19.
Outlook
The underlying strength of Ford’s business, said Lawler, supports an increase in the company’s guidance for full-year 2021 adjusted EBIT to between $10.5 billion and $11.5 billion.
Rivian, in which Ford holds an equity stake, has announced that it plans to conduct an initial public offering of shares in the company. In the event Rivian completes an IPO, Ford will record any gain on its investment in Rivian and subsequent adjustments as special items. Accordingly, Ford will recast its pre-IPO non-cash adjusted EBIT gain of about $900 million from the first quarter of 2021 as a special item.
Ford’s expectations for fourth-quarter adjusted EBIT assume an increase in wholesale shipments from the third quarter, combined with a continued healthy mix of vehicles sold and net pricing, and continued strong, but sequentially somewhat lower, results from Ford Credit.
There is no change in Ford’s guidance for full-year 2021 adjusted free cash flow of $4.0 billion to $5.0 billion.
Lawler said Ford typically does not provide next-year financial guidance in October and won’t do so at this point for 2022. Directionally, he said, the company has momentum from and expects to build on its strong performance in 2021. External ambiguities for 2022 could include:
- The interplay between semiconductor-related constraints and vehicle volumes and pricing, which are expected to remain dynamic
- Likely inflationary effects on direct and indirect costs, including for materials and freight; for example, commodity costs are expected to be up $3 billion to $3.5 billion for full-year 2021, and could increase another $1.5 billion in 2022, and
- Strong auction values being moderated by lower lease-end return rates and smaller vehicle inventories, implying lower results – though another solid year – from Ford Credit.
Ford plans to provide financial guidance for 2022 when it reports fourth-quarter and full-year 2021 financial results on Feb. 3.
# # #
About Ford Motor Company
Ford Motor Company (NYSE: F) is a global company based in Dearborn, Michigan, that is committed to helping build a better world, where every person is free to move and pursue their dreams. The company’s Ford+ plan for growth and value creation combines existing strengths, new capabilities and always-on relationships with customers to enrich experiences for and deepen the loyalty of those customers. Ford designs, manufactures, markets and services a full line of connected, increasingly electrified passenger and commercial vehicles: Ford trucks, utility vehicles, vans and cars, and Lincoln luxury vehicles. The company is pursuing leadership positions in electrification, connected vehicle services and mobility solutions, including self-driving technology, and provides financial services through Ford Motor Credit Company. Ford employs about 184,000 people worldwide. More information about the company, its products and Ford Motor Credit Company is available at corporate.ford.com.
Contacts:
Media
T.R. Reid
1.313.319.6683
[email protected]
Equity Investment
Community
Lynn Antipas Tyson
1.914.485.1150
[email protected]
Fixed Income
Investment
Community
Karen Rocoff
1.313.621.0965
[email protected]
Shareholder
Inquiries
1.800.555.5259 or
1.313.845.8540
[email protected]
Conference Call Details
Ford Motor Company (NYSE: F) and Ford Motor Credit Company released their 2021 third-quarter financial results at 4:05 p.m. ET on Wednesday, Oct. 27. Following the release, Jim Farley, Ford president and chief executive officer; John Lawler, Ford chief financial officer; and Marion Harris, CEO, Ford Motor Credit, will host a conference call at 5:00 p.m. ET to discuss the results. The presentation and supporting materials will be available at shareholder.ford.com. Representatives of the investment community will have the opportunity to ask questions on the call.
Ford Third-Quarter Earnings Call: Wednesday, Oct. 27, at 5:00 p.m. ET
Toll-Free: 877.870.8664
International: +1.970.297.2423
Passcode: Ford Earnings
Web: shareholder.ford.com
Replay
Available after 8:00 p.m. ET on Oct. 27 and through Nov. 3
Web: shareholder.ford.com
Toll-Free: 855.859.2056
International: +1.404.537.3406
Conference ID: 7768099
The following applies to the information throughout this release:
- See tables later in this release for the nature and amount of special items, and reconciliations of the non-GAAP financial measures designated as “adjusted” to the most comparable financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”).
- Wholesale unit and production volumes include Ford and Lincoln brand vehicles produced and sold by Ford or our unconsolidated affiliates and Jiangling Motors Corporation (“JMC”) brand vehicles produced and sold in China by our unconsolidated affiliate. Revenue does not include vehicles produced and sold by our unconsolidated affiliates. See materials supporting the Oct. 27, 2021, conference call at shareholder.ford.com for further discussion of wholesale unit volumes.
Last edited:
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Good earnings for sure. Anyhow, interesting to see this line in the earnings release though.
Note to shareholders: "Please disregard Bronco"
Note to shareholders: "Please disregard Bronco"
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My take away, Ford makes money in spite of the stupid shit they're doing with the Bronco. Pretty cool......
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Shareholders are safe. I think that means we will be getting some great news this Friday. Maybe the official 3.0 top delay announcement.
Sounds like the next hang in there gift is ready to ship too.
Sounds like the next hang in there gift is ready to ship too.
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I bought a lot of their shares two days ago. Lol. Lucky me.
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The Focus/Taurus had very small profit margins. Ford found it more beneficial to use the resources allocated to vehicles in a dyeing segment, to hasten the development of electric vehicles, and more profitable modules like the Maverick/Bronco sport.
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I have ford stock, and a decent (IMO) amount of it, but not enough for today's earning to pay for the bronco. As of right now, the stock is up 69 cents after hours. To be able to buy a $40k Bronco with the gains from the earnings report, you would need to own 58,000 shares, or $900k worth of Ford stock as of close. I think anyone with $900k worth of Ford stock likely wasn't worried about how they were going to pay for their Bronco...
I was doing the same math. How many shares at $.69 cents would it take.
The nice thing is I bought in around $6 and thus far it has saved me $7k on my Tremor and $2k on the Bronco by getting X Plan. So $9k plus $10 per share, I would say Ford stock has been great to me. I do miss the 7% dividend though.
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ford stock yes but hardly paid for anything. but my SHIBA coin and tesla stock this week paid for my bronco.
I would like to say congratulations to those of you who purchased in 1994. You've made it back above water!
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