On Tuesday, February 6th, 2024, Ford Motor Company announced its latest earnings. The company's CEO, Jim Farley, stated during the call, "Last year was a foundational year for our company. The impact of choices made regarding power and powertrains is evident, particularly for the F-Series. Our global hybrid sales increased 20% last year, and we project a further 40% increase this year. In the U.S., we're the number one and two best-selling hybrid trucks, with Maverick taking the lead, making us the third top hybrid brand behind Toyota and Honda."
Farley also spotlighted the company's progress with their technology, mentioning, "BlueCruise has surpassed 150 million miles of hands-free use, with quarter-over-quarter growth up by 25%, and the gross margins for both BlueCruise and Ford Pro Intelligence are at 70%-plus." He acknowledged the firm's success in work vehicle production, specifically the new Super Duty, Transit, and Ranger models.
In 2023, Ford saw an 11% rise in revenue, reaching an adjusted EBIT of $10.4 billion. The company also presented a healthy financial state with nearly $29 billion in cash reserves and over $46 billion in liquidity, demonstrating its resilience against potential market uncertainties.
In 2023, the standout was the Ford Pro division, which includes both hardware and software services. It achieved a doubling of EBIT to $7 billion, attributed to steady demand, a desirable product mix, and a focus on profitability. Farley discussed the division's potential, saying, "This is a robust profitability; we've never had 20% attach rates, 0.5 million units of software with 50% margins. We are only just beginning to concentrate on Pro aftersales, where 20% of the profit is coming from attached services."
The earnings call indicated a customer preference towards environmentally friendly and fuel-efficient options, as seen in the strong sales of Ford's hybrid vehicles. Consumer interest in advanced technology and digital connectivity in vehicles is also evident in the popularity of Ford's services such as BlueCruise and Ford Pro Intelligence.
Although Ford did not reveal specific future plans or investments, its financial results confirmed the company's dedication to fiscal discipline, shareholder returns, quality improvements, and further development of the Ford Pro business segment. Ford is looking at profitability and cost reduction, with a particular interest in the electric vehicle sector. However, while the company appears to be heading in a positive direction, future prospects can only be ascertained through action and results. For more comprehensive details regarding Ford's strategic direction and future initiatives, refer to the full earnings call transcript or other public company materials.
F Company info: https://finance.yahoo.com/quote/F/profile
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PSFK Earnings Call Podcast: Ford Motor Company - F