Ford shares fall despite third-quarter sales decline as they point to a lower profit forecast for the end of 2024

Ford (F) reported third-quarter results after the bell on Monday, beating sales but pointing to the low end of its full-year forecast. Ford’s results follow rival GM’s underwhelming Q3 results and its third profit forecast increase for the year.

Ford reported revenue of $46.2 billion versus $41.9 billion per Bloomberg, down from last quarter’s $47.8 billion but up 5% from the $43.8 billion US dollars a year ago. Ford reported adjusted earnings per share of $0.49 on adjusted EBIT (earnings before interest and taxes) of $2.6 billion, in line with estimates. Ford said net income was $900 million, hurt by a previously disclosed one-time charge related to electric vehicles of $1 billion.

Ford cut its full-year profit forecast, with the automaker now expecting adjusted EBIT of “approximately $10 billion” for 2024, the low end of its previous range of $10 billion to $12 billion. In a media call with reporters, Ford Vice Chairman and CFO John Lawler cited “supply disruptions” for lower sales of Ford Pro and Ford Blue.

Ford shares fell more than 5% in after-hours trading.

“We have made strategic decisions and taken tough actions to give Ford advantages over competitors in key areas such as Ford Pro, international operations, software and next-generation electric vehicles,” Jim Farley, Ford president and CEO, said in a statement. “Important.” “Over time, we have significant financial potential as we optimize the cost and quality curve, a key focus of our team.”

As part of its Ford+ plan, Ford divided its business into three units: Ford Blue for the traditional gasoline engine business, Ford Model e for the EV division, and Ford Pro for the commercial and super truck business. For the third quarter, analysts expect the following:

• Ford Blue: $26.2 billion in sales, $1.627 billion in EBIT

• Model e: $1.2 billion in revenue, -$1.224 billion in EBIT

• Ford Pro: $15.7 billion in revenue, $1.814 billion in EBIT

Ford said full-year Model E losses would be about $5 billion, slightly less than the $5.5 billion it previously forecast.

Ford’s third-quarter U.S. deliveries reported earlier this month rose 4.3% year-over-year to 504,039 vehicles, but are still below the 536,050 vehicles delivered last quarter. Ford said electric vehicle sales rose 12% year-over-year, driven by the Ford Lightning pickup and Ford E-Transit van. Ford hybrid vehicles, led by the Maverick pickup, rose 38% year-over-year.

GM, on the other hand, has raised its guidance every quarter this year and now expects adjusted EBIT of $14 billion to $15 billion (previously $13 billion to $15 billion), among other metrics.

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