Ford Motor Company posted much better-than-expected numbers for its most recent quarter. And, it explained why its future is bright. Investors cheered the results. Based on comments about expenses, many of Ford’s employees did not.
Revenue rose to $40.2 billion from $26.8 billion in the year ago period. Net income increased to $667 million from $561 million. CFO John Lawler said “Ford’s outlook for full-year 2022 financial performance has not changed: adjusted EBIT of $11.5 billion to $12.5 billion, which would represent 15% to 25% growth from last year, and adjusted free cash flow of $5.5 billion to $6.5 billion.”
The company’s stock, which has been in a rut for months, rose a few percentage points after hours. In premarket trading, the shares stood at $13.93.
Another announcement that should cheer investors was that Ford’s board raised its quarterly dividend to $0.15 a quarter from 0.10. The move helps the Ford family considerably, but the benefit reached all of Ford’s investors.
Ford management hinted strongly that its expenses were too high. This seems to confirm earlier reports of planned layoffs.
Ford needed the success, and its produced. The quarters ahead will be defined by its ability to get a yield from the billions of dollars it has invested in electric vehicles. The plan has already produced some success. Ford has launched an EV version of its most successful product. The Ford F-150 Lightning has been released into a market of millions of people who already own a gas powered F-150. An EV has never been placed into such a ready consumer base.
The future that Ford has trumpeted is here, and appears ready to look even better.
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