Ford Motor (F) Income Q4 2024

Detroit – Ford engine Beat Wall Street the upper and lower expectations of Wall Street in the fourth quarter, but the company predicts a harder year, as CEO Jim Farley promises improvements in vehicle quality and costs.

Ford’s shares fell 5%in the trade with after-hours.

Ford’s forecast this year requires adjusted profits before interest and taxes or EBIT of $ 7 billion to $ 8.5 billion. Adjusted Free Cashflow of 3.5 billion US dollars up to 4.5 billion dollars; And investments between 8 and 9 billion US dollars.

For 2024, Ford reported an adjusted EBIT of $ 10.2 billion or $ 1.84 in adjusted result per share and net profit of 5.9 billion US dollars or $ 1.46 in the amount of profit per share. The car manufacturer reported a company record of $ 185 billion, including its finance arm, and the adjusted Free Cashflow was 6.7 billion dollars.

“We think it’s careful. There are many external factors … but our future is really in our hands,” said Farley on Wednesday during CNBC’s “locking bell” about the warning instructions.

The company carried out in the fourth quarter compared to average estimates by LSEG:

• Result per share: 39 cents are expected compared to 33 cents
• Motories: 44.9 billion US dollars expected compared to $ 43.02 billion

The company said that its instructions from 2025, which corresponds to many analysts or lower than the expectations of many analysts, assume that the headwind is related to market factors. “This includes 2% of the lower pricing in industry and somewhat lower wholesale for Ford, but no additional tariffs from the Trump administration.

“In view of the break in the current tariff situation, especially in Mexico and Canada, we do not choose to take measures at this time,” said Sherry House, Chief Financial Officer from Ford, on Wednesday during a call to media. “We will have this carried out ourselves so that we can better understand the possible effects on our business.”

According to House, this year’s forecast also takes into account the expectations of reducing material and guarantee costs of 1 billion US dollars compared to the previous year. This follows in 2024 1.4 billion US dollars in cost reductions, which have been largely compensated for by unexpected quality and warranty costs.

The first half of 2025 will probably be weaker than the backend. This includes the adapted EBIT in the first quarter, which will be approximately braking due to lower wholesale and less profitable vehicles, including the start activity in the most important US assembly systems in Kentucky and Michigan.

For the fourth quarter of 2024, Ford reported a net result of 1.8 billion US dollars or 45 cents per share compared to a net loss of $ 526 million or a loss of 13 cents per share in the previous year. The company reported a result of 39 cents per share.

Ford’s traditional “Blue” operations and “Pro” fleet transactions have brought the car manufacturer to profitability because the electric vehicle business “Model E” lost 5.08 billion US dollars in 2024, including 1.39 billion US dollars in the fourth quarter .

The Blue Business, which includes internal burning engine vehicles, earned 5.28 billion US dollars in 2024, which declined to a decline of almost 2.2 billion US dollars compared to the previous year. Pro earned more than 9 billion US dollars last year, including 1.63 billion US dollars in the fourth quarter.

For 2025, Ford EBIT forecasts $ 7.5 billion to $ 8 billion from Ford Pro; 3.5 to 4 billion US dollars for Ford Blue; And a loss of 5 to 5.5 billion US dollars for Ford Model E. Its Ford -loan rab is expected to make a profit of 2 billion US dollars.

Ford was under pressure to act after the rival of crosstown General Motors The expectations of the fourth quarter of Wall Street in the fourth quarter and said that the instructions from 2025 meet the expectations of the analysts.

Last year Ford has the expectations below average due to unexpected guarantee and recall problems that were plagued by the company’s result. The car manufacturer’s shares decreased by almost 20% in 2024 because Farley had to be corrected.