Auto-First | Hou Shunmao
Revenue of $34.5 billion in the first quarter did not stop the fact that Ford Motor Company lost $3.1 billion overall. Ford Motor's earnings report said the loss came from the fact that the market value of its holdings in Rivian shrank in the first quarter.
However, Ford's full-year 2022 adjusted EBITDA forecast remains unchanged and is expected to be between $11.5 billion and $12.5 billion, up 15% to 25% year-over-year.
Ford motor said that in the first quarter of 2022, the market demand for a series of its new products was strong, but the company's product shipments slowed due to supply chain issues that continue to plague the industry. Jim Farley, president and CEO of Ford Motor Company, said that whether it is Bronco, Bronco Sport, Maverick, or Music Mach-E, E-Transit and the recently officially launched F-150 Lightning, these models have great appeal to consumers and continue to bring considerable orders to Ford. Now Ford is working to overcome the impact of various unfavorable factors and is committed to delivering more Ford models, including innovative electric vehicle products, to more customers as soon as possible.
Ford has committed to producing at least 600,000 electric vehicles worldwide by the end of 2023 and will further increase battery capacity to achieve an annual production of more than 2 million electric vehicles by the end of 2026.
Throughout the first quarter, continued shortages of semiconductor chips worldwide affected Ford's production and deliveries in January and February, but productivity increased significantly in March. So as we enter the second quarter, Jim Farley said Ford had a very healthy order profile.
Ford Motor's first-quarter revenue was $34.5 billion, with wholesale sales of nearly 970,000 units, down 9 percent from a year earlier.
A net loss of $3.1 billion in the first quarter was primarily attributable to the shrinking market value of the rivian held in the first quarter. The Company's adjusted EBIT was $2.3 billion, representing an adjusted EBIT margin of 6.7%. Higher net transaction prices boosted profitability, while higher raw material prices, lower overall product shipments, and a reduced share of pickup and large SUV combinations were the main factors affecting profits.
As of the first quarter, Ford remained strong in business operations, holding nearly $29 billion in cash and $45 billion in liquidity (both including the market capitalization of Ford's stake in Rivian, up from $5.1 billion as of March 31).
In the strategically important Chinese market, Ford further consolidated the Lincoln brand's position in the Luxury Car Market in China, with Lincoln China setting another first-quarter sales record of 19,471 units and achieving consecutive positive quarter-on-quarter growth.
Although the market activity in the first quarter was affected by the epidemic, Ford China is actively responding to severe external environmental challenges with partners and suppliers, and the two strategic products of "Ford China 2.0", the new Lincoln Z, the new generation of Ford Mondeo, and Ford Lingrui, have received more than expected orders since their launch in March. The mustang Mach-E delivery speed of the pure electric SUV is also steadily climbing. In the first quarter, Jiangling Motors has received 5,100 orders for the production of Trans Shun ambulances, and the company is currently working day and night to produce in the factory to escort the fight against the epidemic.
Jim Farley said Ford has identified and is working hard to address a variety of key issues affecting the company's profitability and business growth. "We've done well in some important businesses, such as mass-producing best-selling models," Jim Farley said, "but there are still some issues in the current business area, and in the area of future technology that we have high hopes for, that need to be improved, and we will actively push for these changes." ”
To this end, on March 2 this year, Ford Motor announced the relevant strategic transformation, deciding to clarify and allocate the priorities of business operations by establishing an independently operated automotive business unit within Ford Motor, and giving full play to existing advantages to create new strategic forces: Ford Blue will become a key source of profitable growth and cash flow for the company by launching a high-quality portfolio of iconic fuel vehicles; Ford Model e will accelerate innovation and launch industry-breaking electric vehicle products and digital services. And ford motor vehicles and other business units share these digital technologies and services; Ford Pro will provide commercial customers with tailored fuel and electric vehicles and services to help them transform; Ford+ development plans continue to make more new progress, including: the highly anticipated F-150 Lightning, the most popular electric version of the best-selling pickup truck in the United States in the past 40 years, has received 200,000 orders so far.
John Lawler, Ford's chief financial officer, said the company maintained its adjusted EBITS forecast for 2022 at between $11.5 billion and $12.5 billion, thanks to strong demand for existing and new models and healthy pricing. Adjusted free cash flow is expected to reach $5.5 billion to $6.5 billion.