Ford sticks to 2022 profit forecast

In the second quarter of this year, Ford posted sales of $40.2 billion on a 35% increase in wholesale shipments along with favorable pricing and vehicle mix. The company’s net income was $667 million, a margin of 1.7%, including a mark-to-market loss on Ford’s stake in Rivian.

Adjusted earnings before interest and taxes were $3.7 billion, an adjusted EBIT margin of 9.3%.

Ford confirmed its expectations for full-year 2022 results: Adjusted EBIT of $11.5 billion to $12.5 billion, up 15% to 25% from 2021; adjusted free cash flow from $5.5 billion to $6.5 billion.

The results were seen by analysts as better than expected.

The company’s full-year 2022 outlook continues to see 10% to 15% growth in auto wholesale from 2021, along with significantly higher profits in North America; collective profitability of other regional markets; strong pre-tax profit, although lower than last year, from Ford Credit; and modest improvement in Mobility and Corporate Other.

Ford CFO John Lawler said demand and the resulting order bank is strong and expected to remain.

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