Ford ha cut le 2024 earnings forecast, citing rising costs and supply chain disruptions from hurricanes that recently hit several regions in the United States. The Detroit automaker now expects about $10 billion, down from its previous estimate of $10 billion to $12 billion and below market analysts' expectations. Following the announcement, the stock fell more than 6% after the close of trading on Wall Street on Monday.
While Renault and Tesla presented better-than-expected accounts, Ford joins the numerous profit warnings that have affected many big manufacturers in recent months. On Thursday, October 30, it will be Stellantis and Volkswagen's turn to raise the curtain on their accounts. Not that a miracle is expected, on the contrary. The quarterly results will once again highlight the crisis in the sector.
Ford Lowers 2024 Guidance, Shares Fall on Wall Street
The downward revision in guidance sent the stock price below $10 (9,88), reducing the market capitalization to about $45,2 billion. In July, Ford shares had already suffered a significant decline, following the increase in warranty costs that had impacted profit forecasts. In response, CEO Jim Farley initiated a recovery plan which includes rigorous quality measures: thousands of new models are left in storage for further checks. However, Ford continues to fight to contain costs, especially those related to repairs of quality problems.
Ford's accounts
Despite the challenges, Ford recorded a Useful net of 4,1 billion dollars (3,7 billion euros) in the first nine months of the year, although marking a decrease of 16,7% compared to the same period of 2023. revenues, however, grew by 5%, reaching 136,8 billion dollars (126,5 billion euros). In the third quarter alone, Ford totaled a profit of 892 million dollars (824 million euros), 25,6% lower than the previous year – also affected by the cancellation of an electric SUV that entailed a cost of about 1 billion dollars – but with a revenue increase of 5,4%.
By segment, the Ford Pro commercial unit generated EBITDA of $1,8 billion (€1,7 billion), driven by increased sales of the popular F-series of trucks aimed at corporate fleets, with approximately 200 units sold in the quarter.
For 2024, the Detroit house plans a adjusted free cash flow cbetween 7,5 and 8,5 billion and expense on capital account between $8-8,5 billion.
“We need to accelerate and integrate warranties as a key element of this strategy,” said Ford CFO John Lawler.
