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Ford Motor Affirms FY2 Guidance

Outlook CFO John Lawler said that Ford’s outlook for full-year 2022 financial performance has not changed: adjusted EBIT of $11.5 billion to $12.5 billion, which would represent 15% to 25% growth from last year,

Benzinga · 07/27/2022 16:09

Outlook CFO John Lawler said that Ford’s outlook for full-year 2022 financial performance has not changed: adjusted EBIT of $11.5 billion to $12.5 billion, which would represent 15% to 25% growth from last year, and adjusted free cash flow of $5.5 billion to $6.5 billion. Lawler said again that Ford is targeting a total company adjusted EBIT margin of 10% – and an 8% EBIT margin from its EVs – by 2026. The company’s full-year 2022 guidance continues to assume 10% to 15% growth in vehicle wholesales from 2021, along with significantly higher profits in North America; collective profitability from other regional markets; strong earnings before taxes, though lower than last year, from Ford Credit; and modest improvement in Mobility and Corporate Other. Lawler said that demand and the resulting order bank for Ford’s iconic ICE and mainstream electric vehicles is – and is expected to remain – strong. Other assumptions include: • Continued strong pricing, including benefits from actions taken during the year, as the relationship between product volume and pricing remains dynamic • About $4 billion in headwinds from commodity prices, which Ford anticipates offsetting with improvements in net pricing and mix • Other inflationary pressures continuing to affect a broad range of costs – now expected to total about $3 billion for the year, up roughly $1 billion from what the company envisioned a quarter ago, with the team actively looking at opportunities to offset increases, and • Solid, but lower, full-year EBT from Ford Credit of about $3 billion. Ford plans to report its third-quarter 2022 financial results on Wednesday, Oct. 26.