A loss before interest and taxes dragged down Ford's second-quarter net result, missing analyst expectations despite an increase in revenues.
The company reported revenues of $47.8 billion for the period, which was 6% higher than the figure for the year-earlier quarter, and a net result of $1.8 billion on earnings before interest and tax of $2.8 billion.
What's more interesting is the breakdown of the financial figures by segment, after Ford divided its business into three parts: Ford Blue, for its gas-powered passenger car line, Ford Model e, for its electric vehicles, and Ford Pro, for its commercial and truck business.
Ford Blue booked a revenue increase of 3% to $26.7 billion for the second quarter, with earnings before interest and tax of $1.17 billion. The unit sported an EBIT margin of 4.4%, a decline of 4.8 percentage points from last year.
Ford Pro also did well, booking a 3% revenue increase to $17 billion for the second quarter of 2024, with EBIT rising $173 million on the year to reach $2.56 billion. That unit boasted an EBIT margin of 15.1% for the period.
In the EV segment, however, things did not look so well. Revenue came in at $1.1 billion, which was 37% lower than the revenue of that segment for the second quarter of 2023. Earnings before interest and tax were a negative $1.143 billion, with an EBIT margin of a negative 99.5%. The total loss of that segment for the full year is seen at $5.5 billion.
For the full year, Ford expects to book adjusted EBIT of between $10 billion and $12 billion, which was another disappointment for investors as it marks no change from earlier earnings projections. The company did, however, raise its outlook for free cash flow by $1 billion, to between $7.5 billion and $8.5 billion.
By Irina Slav for Oilprice.com
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Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry. More