Ford Motor(US:F)2024-07-24 23:23Financial Performance - Net income for the first half of 2023 was $3,679 million, compared to $3,167 million for the same period in 2024[12]. - Net income for the second quarter of 2023 was $1.917 billion, reflecting a 99% increase compared to the previous quarter[29]. - Net income attributable to Ford Motor Company for the second quarter of 2024 was $1.831 billion, down from $1.917 billion in the second quarter of 2023[43]. - Basic and diluted earnings per share for the first half of 2024 were $3.163, compared to $3.674 in the first half of 2023[43]. - Total comprehensive income for the second quarter of 2023 was $2.016 billion, indicating robust financial performance[29]. - Total revenues for the second quarter of 2024 reached $86.428 billion, with $81.512 billion from the company excluding Ford Credit and $4.916 billion from Ford Credit[31]. - Total revenues for Q2 2024 reached $47.808 billion, a 6.5% increase from $44.954 billion in Q2 2023[158]. - Adjusted EBIT for Q2 2024 was $2,757 million, a decrease of $1,029 million from $3,786 million in Q2 2023, with an adjusted EBIT margin of 5.8%[173]. Assets and Liabilities - Total current assets as of December 31, 2023, were $121,481 million, slightly up from $120,518 million on June 30, 2024[10]. - Total liabilities as of December 31, 2023, were $230,512 million, down from $232,991 million on June 30, 2024[10]. - Total debt for Ford Credit was reported at $129,287 million as of December 31, 2023, slightly decreasing to $130,495 million by June 30, 2024[94]. - Total assets as of Q2 2024 were $276.586 billion, reflecting a significant increase from $265.991 billion in Q2 2023[158]. - Total cash, cash equivalents, and restricted cash decreased from $25,110 million on December 31, 2023, to $20,226 million on June 30, 2024[56]. - Company liquidity, excluding Ford Credit, decreased from $46.4 billion to $44.8 billion during the same period[209]. Cash Flow and Financing - Net cash provided by operating activities for the first half of 2023 was $7,835 million, while it was $6,893 million for the first half of 2024[12]. - Proceeds from the issuance of long-term debt in the first half of 2023 were $26,401 million, compared to $28,960 million in the first half of 2024[12]. - Financing income for the second quarter of 2023 was $1.426 billion, contributing to overall revenue growth[29]. - The company reported a total of $24.862 billion in cash and cash equivalents as of December 31, 2023[46]. - Interest on Debt decreased to $270 million in Q2 2024, down by $34 million year-over-year[204]. Inventory and Production - Inventories as of December 31, 2023, were $15,651 million, decreasing to $17,183 million by June 30, 2024[10]. - Total inventories increased from $15,651 million on December 31, 2023, to $17,183 million on June 30, 2024, primarily due to new vehicle launches[83]. - Finished product inventory increased from $9,455 million on December 31, 2023, to $11,594 million on June 30, 2024[83]. Equity and Dividends - Total equity attributable to Ford Motor Company was $42,773 million as of December 31, 2023, down from $43,567 million on June 30, 2024[10]. - The company declared dividends of $0.80 per share, totaling $3.241 billion for the period[29]. - As of June 30, 2023, total equity was reported at $43.677 billion, with retained earnings of $31.577 billion[29]. Credit Quality and Losses - The provision for credit and insurance losses was $212 million for the first half of 2023, increasing to $317 million in the first half of 2024[12]. - The credit quality analysis for consumer receivables indicated that 98.8% were current, with total past due receivables at $928 million, representing 1.2%[66]. - The allowance for credit losses remained stable at $882 million on December 31, 2023, and $880 million on June 30, 2024[60]. - Net charge-offs increased to $131 million in the second quarter of 2024, compared to $124 million in the previous quarter, reflecting normalization from lower levels post-COVID-19[80]. Strategic Initiatives - The company expects to maintain a strong revenue growth trajectory, with a focus on expanding its electric vehicle offerings[29]. - The company plans to enhance its market presence through strategic partnerships and potential acquisitions in the automotive sector[29]. - The Ford Blue segment focuses on the sale of internal combustion engine and hybrid vehicles, while the Ford Model e segment focuses on electric vehicles[142][143]. - The company continues to review its global businesses for potential additional restructuring actions where sustained profitability is not feasible[111]. Restructuring and Costs - The company recorded costs of $1 billion and $853 million in the first half of 2023 and 2024, respectively, related to employee separations and supplier settlements[111]. - Restructuring costs in Europe for Q2 2024 amounted to $226 million, compared to a loss of $51 million in Q2 2023[167]. - The company estimates incurring about $1 billion in total charges in 2024 primarily due to employee separations and supplier settlements[111]. Warranty and Regulatory Matters - The estimated cost of warranty obligations and field service actions is reported to be up to about $1.3 billion in aggregate[138]. - Payments made during the period for warranty obligations were $2.011 billion in 2023 and $2.862 billion in the first half of 2024[138]. - The ending balance for warranty obligations increased from $9.193 billion in 2023 to $12.553 billion in the first half of 2024[138]. - The estimated aggregate risk for indirect tax and regulatory matters is up to about $0.6 billion[133].