Ford Motor Company announced on Thursday that its electric car business lost $2.1 billion in operational profit last year, which was more than offset by $10 billion in operating profit from its internal combustion and fleet businesses.
The Detroit carmaker anticipates similar results in 2023, projecting an adjusted loss for its EV unit of $3 billion, adjusted profitability for its internal combustion unit of around $7 billion, and adjusted earnings for its fleet business of about $6 billion.
As Ford reveals a new financial reporting structure aimed at giving Wall Street a clearer grasp of how its electric vehicle business is progressing, the financials are the first thorough look at unit profitability.
Ford disclosed copies of its restated 2021 and 2022 financial statements on Thursday to provide analysts and investors with a basis for future comparison. These updated figures reveal that while Ford Model e, the business’s electric vehicle division, lost $2.1 billion last year, Ford Blue and Ford Pro produced adjusted operating income of $6.8 billion and $3.2 billion, respectively.
When the business ramps up EV production, such Model e losses in 2022 more than treble unit losses in 2021.
Ford maintained on Thursday that it anticipates producing 2 million EVs annually by the end of 2026. By then, it aspires to have an EBIT profit margin of 10%.
In order to provide analysts and investors with a basis for future comparison, Ford provided versions of its restated 2021 and 2022 financial statements on Thursday.
According to those updated figures, Ford Blue and Ford Pro produced adjusted operating profits of $6.8 billion and $3.2 billion, respectively, while the company’s electric vehicle unit, Ford Model e, lost $2.1 billion last year.
As the business continues to ramp up EV production, those 2022 Model e losses more than treble unit losses from 2021.
Ford reaffirmed its expectation to produce 2 million EVs annually by the end of 2026 on Thursday. By then, it aspires to have a 10% profit margin on an EBIT basis.
Under the new financial reporting structure, the company intends to make it easier for analysts, investors, and other stakeholders to grasp how successful its main internal combustion businesses are.
At 10 a.m. ET on Thursday, Ford will have a “teach-in” to walk investors and analysts through the new reporting format. The event will be streamed live online at Ford’s investor relations website.
The automaker will release its first-quarter financial results on May 2 and during its annual Capital Markets Day on May 22 will go into greater detail about its strategy and the status of its restructuring efforts.
