February 7, 2024 (Investorideas.com Newswire) Investorideas.com (www.investorideas.com) Auto/EV Stock News Bites - Ford+ (NYSE:F) , in its first full year of operating with customer centered business segments in 2023, demonstrated the strategy's capacity to adapt to the wants and needs of customers and give them great experiences and value, while generating growth and profitability.
Ford's fourth-quarter 2023 revenue was $46 billion, an increase of 4% from the same period a year ago on comparable vehicle volumes. Net pricing was favorable. A net loss of $526 millionin the period was attributable to a $1.7 billion pretax, non-cash accounting loss related to the remeasurement of pension and other postretirement employee benefits plans. Adjusted earnings before interest and taxes, or EBIT, totaled $1.1 billion.
For full-year 2023, revenue was up 11% to $176 billion. Net income improved year-over-year to $4.3 billion; adjusted EBIT of $10.4 billion was essentially flat year-over-year and at the high end of guidance that Ford provided following ratification of its new contracts with the UAW in the U.S. and Unifor in Canada.
Profitability and cash flow from outside North America in 2023 represented a reversal from a combined loss of about $2 billion in 2020. The improvement in those markets reflected benefits from lower capital approaches in China and elsewhere, and continued strength of the Ranger midsize pickup and Everest SUV.
Operating cash flow of $14.9 billion for all of 2023 was solid; adjusted free cash flow of $6.8 billion was significantly better than the company's outlook of $5.0 billion to $5.5 billion. Ford's balance sheet remains strong, with nearly $29 billion in cash and more than $46 billion in liquidity at the end of the year.
CFO John Lawler said that the company's robust cash flow and disciplined capital allocation enable vital investments in Ford+ while also returning value to shareholders - targeting distributions of 40% to 50% of adjusted free cash flow.
Accordingly, the company today declared a first-quarter regular dividend of 15 cents per share and a supplemental dividend of 18 cents per share. The dividends are payable March 1 to shareholders of record at the close of business on Feb. 16.
Lawler said that Ford will improve capital efficiency by both selectively reducing investments and raising the bar on expected returns for initiatives that the company greenlights.
"The objective is to improve total adjusted return on invested capital from about 14% in 2023 to 20% over the next couple of years," Lawler said. "Simply 'good' isn't good enough and investments are going to projects that have credible plans to deliver their targeted returns."
EVs, according to the company, provide a great illustration.
"EVs are here to stay, customer adoption is growing, and their long-term upside is central to Ford+," said Lawler. "The customer insights we're getting by being an early mover in electric pickups, SUVs and commercial vehicles are invaluable - especially as we're developing nextgeneration EVs that are going to surprise customers and be profitable within a year of launch.".
Read the company's full news and disclaimer here:
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