P. A. Schilke
Well-Known Member
- First Name
- Phil
- Joined
- Apr 3, 2019
- Threads
- 142
- Messages
- 7,016
- Reaction score
- 36,214
- Location
- GV Arizona
- Vehicle(s)
- 2019 Ranger FX4 Lariat 4x4, 2020 Lincoln Nautilus, 2005 Alfa Motorhome
- Occupation
- Engineer Retired
- Vehicle Showcase
- 1
- Thread starter
- #1
From my Retire Newsletter.... Note the mention of Ranger....
Hi, Ford Team.
We just reported Ford’s first-quarter 2022 operating results. There were good things about our performance, and other things that we need to do much better.
The press release detailing our results is on @FordOnline. A recording of the conference call Jim Farley and I host with stock analysts will be available starting Wednesday night (Dearborn Time) at shareholder.ford.com.
The first quarter provided the latest proof: customers really like our new products. Bronco and Bronco Sport. Maverick. Mustang Mach-E. E-Transit. Now, F-150 Lightning. And there’s more coming behind them, like the next-generation Ranger later this year. Most importantly, our expectations for full-year 2022 profitability coming out of the quarter have not changed: our guidance remains $11.5 billion to $12.5 billion in adjusted earnings before interest and taxes, or EBIT.
EBIT in North America was $1.6 billion. Ford was profitable in the rest of the world. Profitability of our operations in Europe, South America, China and the International Markets Group all improved year-over-year. Ford Credit had another strong quarter, with earnings before taxes of $928 million – and an expanding range of services, like new financing options for smaller commercial customers.
However, we also missed opportunities. We’re starting the second quarter with a substantial bank of customer orders – representing about $17 billion in revenue – partly because we failed to take full advantage of our manufacturing capacity in Q1. Without enough semiconductors, we couldn’t build everything that customers wanted.
That volume decline limited the fundamental revenue and earnings power of our underlying auto business. While our first-quarter wholesales were what we expected, we could have built and shipped a lot more vehicles – especially trucks and SUVs – if we had the components needed to produce them.
There’s tremendous opportunity ahead of us with Ford+. In order to grab it, we have to make the most of and refine the things we do well – and recognize and improve in the areas where we’re not achieving the results we need.
There are some obvious ways we can improve. We know how to build vehicles at high volumes., something start-up companies dream about. But we’ve got to do that with simpler processes, higher quality, lower costs and maximum free cash flow.
We’re beating the competition to market with in-demand, high-performance, zero-emission electric vehicles. Now we need to go all-in on leading with innovative EVs, developed from the ground up with customers in mind. In the meantime, we have to do everything we can to break production constraints on all of our popular vehicles – and ramp our EV capacity to 600,000 by the end of next year, then more than two million EVs by the end of 2026.
Transformation takes time, but the remaking of our company and our future – aligned with the Ford+ plan – is happening. In March, we said we’re creating three distinct auto businesses to hasten that process, sharpen how we allocate capital and clarify the kind of return expected from our strategic investments:
Making those changes won’t be easy. At some points they will be uncomfortable. But not making them would be even harder, in the long run. I believe the opportunity presented by Ford+ – for our customers and the company – is as significant as any we’ve had in the past 100 years.
I’m excited about where Ford is heading and I hope you are, too. Let’s keep customers first as we create this new future together, continually thrilling them with great products and services. And let’s keep challenging ourselves and each other to accomplish more than we thought possible just a short time ago.
Best,
John
Hi, Ford Team.
We just reported Ford’s first-quarter 2022 operating results. There were good things about our performance, and other things that we need to do much better.
The press release detailing our results is on @FordOnline. A recording of the conference call Jim Farley and I host with stock analysts will be available starting Wednesday night (Dearborn Time) at shareholder.ford.com.
The first quarter provided the latest proof: customers really like our new products. Bronco and Bronco Sport. Maverick. Mustang Mach-E. E-Transit. Now, F-150 Lightning. And there’s more coming behind them, like the next-generation Ranger later this year. Most importantly, our expectations for full-year 2022 profitability coming out of the quarter have not changed: our guidance remains $11.5 billion to $12.5 billion in adjusted earnings before interest and taxes, or EBIT.
EBIT in North America was $1.6 billion. Ford was profitable in the rest of the world. Profitability of our operations in Europe, South America, China and the International Markets Group all improved year-over-year. Ford Credit had another strong quarter, with earnings before taxes of $928 million – and an expanding range of services, like new financing options for smaller commercial customers.
However, we also missed opportunities. We’re starting the second quarter with a substantial bank of customer orders – representing about $17 billion in revenue – partly because we failed to take full advantage of our manufacturing capacity in Q1. Without enough semiconductors, we couldn’t build everything that customers wanted.
That volume decline limited the fundamental revenue and earnings power of our underlying auto business. While our first-quarter wholesales were what we expected, we could have built and shipped a lot more vehicles – especially trucks and SUVs – if we had the components needed to produce them.
There’s tremendous opportunity ahead of us with Ford+. In order to grab it, we have to make the most of and refine the things we do well – and recognize and improve in the areas where we’re not achieving the results we need.
There are some obvious ways we can improve. We know how to build vehicles at high volumes., something start-up companies dream about. But we’ve got to do that with simpler processes, higher quality, lower costs and maximum free cash flow.
We’re beating the competition to market with in-demand, high-performance, zero-emission electric vehicles. Now we need to go all-in on leading with innovative EVs, developed from the ground up with customers in mind. In the meantime, we have to do everything we can to break production constraints on all of our popular vehicles – and ramp our EV capacity to 600,000 by the end of next year, then more than two million EVs by the end of 2026.
Transformation takes time, but the remaking of our company and our future – aligned with the Ford+ plan – is happening. In March, we said we’re creating three distinct auto businesses to hasten that process, sharpen how we allocate capital and clarify the kind of return expected from our strategic investments:
- Ford Blue, which holds our iconic internal combustions vehicles and customer experiences, critical sources of growth, profitability and liquidity for a long time
- Ford Model e, which will rapidly develop and market incredible EVs and connected, digital services that will be shared across our vehicle lines
- And Ford Pro, which will help commercial customers transform their enterprises with tailored ICE and electric vehicles and services.
Making those changes won’t be easy. At some points they will be uncomfortable. But not making them would be even harder, in the long run. I believe the opportunity presented by Ford+ – for our customers and the company – is as significant as any we’ve had in the past 100 years.
I’m excited about where Ford is heading and I hope you are, too. Let’s keep customers first as we create this new future together, continually thrilling them with great products and services. And let’s keep challenging ourselves and each other to accomplish more than we thought possible just a short time ago.
Best,
John
Sponsored