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Ford turned a profit in the second quarter as it battled supply chain issues like other U.S. automakers, describing its Q2 net income of $667 million as “solid.”
Overall the Dearborn, Michigan-based auto company also reported $3.7 billion in adjusted EBIT on revenue of $40.2 billion. It reported $2.9 billion in operating cash flow and $3.6 billion in adjusted free cash flow and raised its quarterly dividend to 15 cents per share.
The company said it reported a profit as it deals with a tough supplier environment and a push to “continue remaking itself.”
“We’re moving with purpose and speed into the most promising period for growth in Ford’s history – to innovate and deliver great products and connected services, raise quality and lower costs,” said CEO Jim Farley in a statement. “We’re giving customers great experiences and value, improving our profitability and making Ford the next-generation transportation leader.”
Full speed ahead
Despite pedestrian results, the company affirmed its full-year guidance for the year: adjusted EBIT of $11.5 billion to $12.5 billion, up 15% to 25% from 2021; adjusted free cash flow of $5.5 billion to $6.5 billion. The move follows General Motors reaffirmation of full-year guidance as well, as it expects a strong second half of 2022.
Additionally, the company confirmed its plans to reorganize the way it operates, including how it plans to report its financial results, beginning next year. It’ll feature three groups:
- Ford Blue – Building out the company’s iconic portfolio of internal-combustion vehicles and optimizing related operations to drive growth and profitability
- Ford Model e – Accelerating development of breakthrough electric vehicles at scale, along with software and connected vehicle technologies and services that will be applied to all of the company’s products, and
- Ford Pro – Which is providing new levels of productivity to business and government customers through work-ready ICE and electric products, along with services to best manage their fleets and broader operations.
Farley said Ford Pro provides “a comprehensive and vivid example today of how Ford+ will benefit customers and, in turn, the company and its other stakeholders over time.”
While commercial customers still overwhelmingly rely on Ford’s industry-leading ICE vans and pickup trucks, he said that they’re increasingly evaluating and adopting EV technology.
According to Motor Intelligence, through the second quarter, Ford E-Transit accounted for 95% of full-size electric vans sold in the U.S. In Europe, the company already has more than 8,000 orders for its current 2-ton E-Transit, with a lighter duty model scheduled for introduction next year.
“And vehicles represent only one part of the ‘always on’ relationships we’re creating with commercial customers,” said Farley. “We’re helping them reduce the total cost of vehicle ownership and make their enterprises more productive overall.”
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