IT Home reported on July 25 that Ford Motor (Ford) released its second-quarter financial report on Wednesday. Although the company's revenue rose 6% year-on-year, beating expectations, its net profit fell significantly short of market expectations.
Ford's revenue in the second quarter of this year was $47.8 billion, up 6% year-over-year, beating expectations; Net income of $1.8 billion and adjusted EBIT of $2.8 billion fell 27% year-over-year and well below market expectations. Among them, the revenue of Ford Pro's commercial vehicle business unit in the second quarter of this year was $17 billion, a year-on-year increase of 9%; Adjusted EBIT was $2.6 billion, up 7% year-over-year; The profit margin is 15%.
In addition, Ford expects adjusted EBIT of $10 billion to $12 billion for the year and an increase of $1 billion to $7.5 billion to $8.5 billion for adjusted free cash flow.
IT Home noted that Ford's electric vehicle (EV) business sold nearly 23,957 electric vehicles in the second quarter, a year-on-year increase of 61%, ranking second only to Tesla in the United States market. Among them, the F-150 Lightning, Mustang Mach-E and E-Transit all achieved double-digit sales growth. However, despite the sizable sales, Ford has cut some of its EV programs due to lower-than-expected demand, including reducing F-150 Lightning production, delaying some EV investments, and adjusting production plans at its Canada plant.
At the same time, Ford is also increasing its investment in hybrid models, with sales of hybrid models increasing by 55.6% in the second quarter. In terms of traditional combustion engine vehicles, sales of F-Series pickup trucks fell by 6% due to the delay in the launch of the next-generation F-150 pickup, but growth in models such as the Ranger, Maverick and Expedition drove overall growth (+4.5%).
However, Ford's electric vehicle division, Model e, continued to lose money, with a loss of $1.1 billion in the second quarter, a decline in revenue to $1.3 billion in the second quarter, and a 23% decline in sales, bringing the cumulative loss to $2.5 billion in the first half of the year. Ford blamed the loss on lower sales and price pressures within the industry, but still expects its Model e electric vehicle business to lose between $500 million and $5.5 billion this year.
In the face of tough market competition, Ford CEO Jim Farley said the company will focus on smaller, more profitable electric models, emphasizing the importance of software and subscription services. In addition, Ford is stepping up the development of a next-generation electric vehicle platform to meet challenges from Tesla and Chinese competitors.
Ford shares fell more than 11% after the earnings report.