Ford posts Q4 loss but $4.3B profit in 2023

Ford Motor Co. said Tuesday it lost $526 million in the fourth quarter of 2023 on increased revenue of $46 billion because of changes to pensions and post-retirement benefits following the United Auto Workers' 41-day strike at the company.

For the full year, the Dearborn automaker recorded $4.3 billion in net income, a 2.5% margin, on $176.2 billion in revenue, up 11% year over year and surpassing expectations. The profit was up from a $2 billion net loss in 2022 — results that had been driven by a mixture of execution issues, supply-chain woes and costs associated with lost investments.

Wall Street analysts, according to Yahoo Finance, on average were projecting the Dearborn automaker to record $165.21 billion in revenue. The Blue Oval's shares in post-market trading were up 6.37% to $12.85 per share.

For 2023, Ford posted adjusted operating earnings of $10.4 billion, flat year-over-year. That fell at the upper end of the company's guidance for adjusted earnings of between $10 billion and $10.5 billion for the full year that it presented in November.

Average profit-sharing payouts to hourly workers for last year are using a new formula based on the company's adjusted operating income, because the Blue Oval no longer reports North American earnings. Temporary employees also are eligible for the first time under the agreement.

The new formula and inclusion of temps results from a new contract between Ford and the UAW ratified in November. The Blue Oval attributed its fourth-quarter loss to a $1.7 billion cost related to the remeasurement of pension and other post-retirement employee benefits plans. Revenue for the October-December quarter was up 4%.

Following the first full year of implementation of the automaker's "Ford+" strategy, the automaker championed its flexibility as the adoption curve of electric vehicles remains bumpy, customers are more inclined to purchase hybrids and internal combustion engine vehicles remain popular.

For 2024, the automaker is anticipating $10 billion to $12 billion in adjusted operating income, presuming at least flat U.S. sales volumes and lower vehicle pricing.

“We’re the only company that gives customers such a wide range of choices — gas, hybrid and electric vehicles — made possible by our Ford+ plan and the talented team that’s carrying it out,” CEO Jim Farley said in a statement. “Ford is creating a product, software and services powerhouse with huge potential for this year and the long haul."

Fordanticipatesfull-year adjusted EBITof$10billion to $12billionandtogenerate $6billionto$7billionin adjusted free cash flow, withcapital expendituresof$8billionto$9.5billion.Theguidancepresumesflat to modestly higherfull-yearU.S. industryvolume,withoveralllowervehiclepricing.Upsidesincludebeneficialpricing and mix from12 months ofsales oftheall-new SuperDuty thatFord Prointroducedduring 2023.The company’stotal costsare expected to be flat year-over-year, the net offactors includingthe$2 billionin industrialcostimprovements,offset byhigherexpensesforlaborand major product-Last year, Ford Blue, the company's internal combustion engine and hybrid vehicle business, posted operating income of $7.46 billion and a 7.3% operating margin. Ford Pro, the commercial vehicle business, reported nearly $7.2 billion in operating income and a 12.4% operating margin. And the loss posted by Ford Model e, the business unit dedicated to electric vehicles, was $4.7 billion. The company in July said it expected Model e to lose $4.5 billion in 2023.

Ford Blue posted operating income of $813 million in the fourth quarter. Ford Pro's was $1.81 billion, and Model e lost $1.57 billion.

Ford will pay a 15-cent regular and 18-cent supplemental dividend on March 1 to shareholders of record on Feb. 16.

Beating expectations last week, crosstown rival General Motors Co. made $10.1 billion in net income on revenue of $171.8 billion. Stellantis NV will reports second-half and full-year 2023 financial results on Feb. 15.

bnoble@detroitnews.com

@BreanaCNoble