For the first time, Ford released its quarterly financial report by the three distinct segments it split the company into a year ago: Ford Blue, producing traditional ICE and hybrid vehicles; Ford Model e, producing electric vehicles; and Ford Pro, producing commercial vehicles.
The resulting data showed Ford’s first-quarter 2023 revenue reached $41.5 billion, up 20% from the same period a year ago, on shipments approaching 1.1 million vehicles, a 9% increase.
While the Ford Blue and Ford Pro business segments were both profitable in every region where they operate---including North America, as Ford was the best-selling vehicle brand in the U.S.---Ford lost $700 million in its Model e segment. Ford said that segment “operates like a startup,” and said in March it expects to lose $3 billion on its EVs this year.
In a press release regarding the first-quarter results, Ford said shipments of and revenue from EVs were limited by production interruptions of two popular vehicles: the Mustang Mach-E SUV, to make industrial changes that will nearly double manufacturing capacity, and the F-150 Lightning pickup, to isolate and address a battery issue before it became a problem for customers.
According to Ford CEO Jim Farley, the first quarter of organizing around and running the company on behalf of distinct customer groups produced solid operating results and a glimpse of the promise of its Ford+ growth plan.
“We’re bringing Ford+ to life by zeroing in on what distinct customers need and value the most,” said Farley. “Ford Pro is leading the way on profitable growth, our big investments in iconic Ford Blue vehicles and derivatives are winning with customers, and Ford Model e’s different approach to EVs is significantly reducing costs on our first high-volume products while rapidly developing breakthrough next-generation vehicles from the ground up.”
Ford reported a net income of $1.8 billion, compared to a net loss in the 2022 period primarily attributable to a change in the value of its investment in Rivian.
Ford is maintaining the full-year 2023 performance expectations it released in early February: adjusted EBIT of $9 billion to $11 billion and adjusted free cash flow of about $6 billion.
Additionally, the company reaffirmed it expects about $7 billion in earnings in 2023 for Ford Blue, up modestly from last year; a full-year loss of about $3 billion for Ford Model e; and $6 billion in earnings for Ford Pro, which would be nearly twice its 2022 earnings.