Friday, 29 July 2022 09:25

Ford Triples Adjusted Earnings in Second Quarter, Reports $3.7B

Written by Phoebe Wall Howard, Detroit Free Press


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Ford Motor Co. on July 27 reported second-quarter adjusted earnings of $3.7 billion---more than triple that of the same period a year ago, when the company had a gain of $1.1 billion.

The company saw a net income of $667 million compared with a $561 million net income for the same time period in 2021.


Ford reported revenue of $40.2 billion compared with $26.8 billion in 2021. The Dearborn, MI, automaker reported $2.9 billion in operating cash flow and adjusted free cash flow of $3.6 billion, compared with a negative free cash flow of $5.1 billion a year ago.


Overall, the company beat Wall Street expectations while also raising the shareholder dividend 50% and restoring payments to prepandemic levels.


"Based on the company’s financial strength and flexibility, Ford’s board of directors today declared a third-quarter regular dividend of 15 cents per share on outstanding stock," the earnings report said. "The dividend is payable on Sept. 1 to shareholders of record at the close of business on Aug. 11."


Meanwhile, Ford Credit saw earnings before taxes of $939 million, a decrease compared with $1.6 billion in 2021.


In North America, Ford reported adjusted EBIT of $3.3 billion, up from $192 million in the same quarter last year. Ford reported EBIT losses in other regions, including China, but showed adjusted EBIT of $60 million in its International Markets Group, down from $204 million in the same quarter a year ago.


Ford said it still expects to have adjusted EBIT for the full year of between $11.5 billion and $12.5 billion and adjusted free cash flow of between $5.5 billion to $6.5 billion.


"It's clear you're seeing that we're transforming the company. ... It's just the beginning," CFO John Lawler told reporters after releasing the data. "Our thinking is much broader. Our ambitions are...

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