GM Inside News Forum banner
1 - 20 of 99 Posts

·
Banned
Joined
·
22,466 Posts
Discussion Starter · #1 ·
Ford Q2 earnings easily beat estimates; stock jumps after hours

Pras Subramanian
·Senior Reporter
Wed, July 27, 2022 at 4:43 PM

Ford (F) reported second quarter financial results after the bell on Wednesday easily topping estimates on both the top and bottom lines, and reaffirming its full-year profit guidance.

For the quarter, Ford reported the following numbers compared to Wall Street's expectations, per Bloomberg consensus estimates:

  • Revenue: $40.2 billion vs $34.78 billion
  • Adjusted EPS: $0.68 vs $0.45
Ford also reiterated its full-year adjusted EBIT (earnings before interest and taxes) guidance of $11.5 billion to $12.5 billion, up 15% to 25% from 2021.

Ford shares were up 5% in after hours trading following the report's release.

“We’re moving with purpose and speed into the most promising period for growth in Ford’s history – to innovate and deliver great products and connected services, raise quality and lower costs,” said CEO Jim Farley said in a statement. “We’re giving customers great experiences and value, improving our profitability and making Ford the next-generation transportation leader.”

Ford also reported $2.9 billion in operating cash flow and $3.6 billion in adjusted free cash flow, leading the board of directors today to issue a dividend of $0.15 a share for all outstanding stock.

In addition, Ford said starting next year it will operate and report financial results around its 3 core business units:

  • Ford Blue - the traditional ICE (internal combustion engine) business
  • Ford Model e - the EV business along with software and connected services
  • Ford Pro – the commercial and government vehicles business unit.
<Continued at Link>

Car Vehicle Tire Hood Automotive tire
 

·
Registered
Joined
·
2,516 Posts
Good catch! I read it, but it didn't register, it was 15 cents before they suspended it in 2020.
- Doesn't appear GM is in the position to reinstate the dividend...
I don't fault GM for not doing it but... I wish they would. I get it, the Ford Family wants their easy money. Can't blame them for that.
 

·
Super Moderator
Joined
·
21,811 Posts
I don't fault GM for not doing it but... I wish they would. I get it, the Ford Family wants their easy money. Can't blame them for that.
I'd rather see GM plow that money back into operations right now.

Good for Ford - impressive metrics over last year. Though I do find GM's additional billion in profit over Ford ($1.7B in Q2 profits, $4.6B YTD) to be be better vs. Fords $.7B Q2 profit ($2.4B loss YTD). Though Ford did have a $2.4B hit in Q2 to adjust for their Rivian stock losses, so pretty good results without that.

I'm sure the IC division of Ford, which probably contributed much of these profits, are cheering the results: Ford CEO Farley Says Automaker ‘Absolutely Has Too Many People’ (msn.com)
 

·
Registered
Joined
·
3,217 Posts
I'd rather see GM plow that money back into operations right now.

Good for Ford - impressive metrics over last year. Though I do find GM's additional billion in profit over Ford ($1.7B in Q2 profits, $4.6B YTD) to be be better vs. Fords $.7B Q2 profit ($2.4B loss YTD). Though Ford did have a $2.4B hit in Q2 to adjust for their Rivian stock losses, so pretty good results without that.

I'm sure the IC division of Ford, which probably contributed much of these profits, are cheering the results: Ford CEO Farley Says Automaker ‘Absolutely Has Too Many People’ (msn.com)
I hate being Nit Picky, but wouldn't Mary's Massive Salary also do so much more for R+D in this time of Change?

I get that Ford's Stock is different than Most, as the Ford Family owns a Majority of Voting Shares, however, The Ford Family also has the Most Invested in the Company. From right back in a Garage in the 1800's.

Mary, ye did work her way up from the Engineering Floor, but I truly believe in Merital Wage compensation, and so far, Mary is Smoke and Mirrors and Promises. She will be Retired before those Promises see the Light of Day, if they ever do.
 

·
Super Moderator
Joined
·
21,811 Posts
I hate being Nit Picky, but wouldn't Mary's Massive Salary also do so much more for R+D in this time of Change?

I get that Ford's Stock is different than Most, as the Ford Family owns a Majority of Voting Shares, however, The Ford Family also has the Most Invested in the Company. From right back in a Garage in the 1800's.

Mary, ye did work her way up from the Engineering Floor, but I truly believe in Merital Wage compensation, and so far, Mary is Smoke and Mirrors and Promises. She will be Retired before those Promises see the Light of Day, if they ever do.
Well, so would all the union workers salaries too. And, without looking up her pay package, I believe it is around $20MM to $25MM, a drop in the bucket for R&D. And I believe some of that $20MM is stock, so not all of that is cash.

She's worth every penny of her salary.

Mary "smoke and mirrors" has given GM stellar results during her tenure. And where will you be next quarter if it turns out GM was hoarding chips for better production runs in Q3 and they push out some strong results as has happened in the past with GM and many other makes?
 

·
Registered
2014 BMW 320i; 2015 Chevy Spark EV (wife's car)
Joined
·
4,887 Posts
In addition, Ford said starting next year it will operate and report financial results around its 3 core business units:

  • Ford Blue - the traditional ICE (internal combustion engine) business
  • Ford Model e - the EV business along with software and connected services
  • Ford Pro – the commercial and government vehicles business unit.
This will be interesting to see come 2023!

I'm sure the IC division of Ford, which probably contributed much of these profits, are cheering the results: Ford CEO Farley Says Automaker ‘Absolutely Has Too Many People’ (msn.com)
ICE vehicles sold in North America alone (Ford's BEV are break even at best) accounted for 90% of Ford's companywide Q2 2022 adjusted EBIT:

Font Parallel Rectangle Electric blue Brand

Font Rectangle Parallel Electric blue Plot
 

·
Super Moderator
Joined
·
21,811 Posts
This will be interesting to see come 2023!


ICE vehicles sold in North America alone (Ford's BEV are break even at best) accounted for 90% of Ford's companywide Q2 2022 adjusted EBIT:

View attachment 66914
View attachment 66915
I understand his comment about cutting heads, but what a way to demoralize the people making the vehicles which generate your profits!

I hope MB handles GM's situation with more tact. No matter what, heads will be lost, but it's how it is handled..
 

·
Registered
2014 BMW 320i; 2015 Chevy Spark EV (wife's car)
Joined
·
4,887 Posts
I hope MB handles GM's situation with more tact. No matter what, heads will be lost, but it's how it is handled..
Same here! I also hope that both GM and Ford are more tactful in communicating the message that gasoline and diesel-powered vehicles (plus hybrids for Ford) are and will continue to be essential for each company's long term financial health, and represent the products the vast majority of their customers want to buy now and well into the future.
 

·
Registered
Joined
·
3,217 Posts
Stellantis posts record first half profit margin ahead of EV reveals

Stellantis NV posted record financial results globally and in North America in the first half of the year, setting up the remainder of 2022 when the automaker, in its second year of existence, will share more details on the electric vehicles it will sell in North America under the Dodge, Jeep and Ram brands.

Stellantis year-over-year had declining sales from a global microchip shortage and other parts crunches. But high vehicle transaction prices drove a $8.2 billion (8 billion euro) net profit, up 34% year-over-year, on $90 billion revenue (88 billion euro), a 17% increase. A $12.7 billion (12.4 billion euro) adjusted operating income represented a record 14.1% group-wide margin compared to 11.4% a year ago.

So Ford Topped Estimates, Stellantis Posts Record, and GM falls short. But MB is worth every cent of pay?

Mary started with a Clean Sheet Company "New GM" and where has it gone? She promises to Lead the EV World, but when? I just don't see her Magic, I am sorry. Promises aren't Product.

Ford for example are basically 2 years into the Mach E, 1 Year into the Lightning/Transit BEV, longer in the Escape HEV, and only now at the Break Even point, yet GM is Leading and will be profitable with the Hummer EV?
 

·
Super Moderator
Joined
·
21,811 Posts
Stellantis posts record first half profit margin ahead of EV reveals

Stellantis NV posted record financial results globally and in North America in the first half of the year, setting up the remainder of 2022 when the automaker, in its second year of existence, will share more details on the electric vehicles it will sell in North America under the Dodge, Jeep and Ram brands.

Stellantis year-over-year had declining sales from a global microchip shortage and other parts crunches. But high vehicle transaction prices drove a $8.2 billion (8 billion euro) net profit, up 34% year-over-year, on $90 billion revenue (88 billion euro), a 17% increase. A $12.7 billion (12.4 billion euro) adjusted operating income represented a record 14.1% group-wide margin compared to 11.4% a year ago.

So Ford Topped Estimates, Stellantis Posts Record, and GM falls short. But MB is worth every cent of pay?

Mary started with a Clean Sheet Company "New GM" and where has it gone? She promises to Lead the EV World, but when? I just don't see her Magic, I am sorry. Promises aren't Product.

Ford for example are basically 2 years into the Mach E, 1 Year into the Lightning/Transit BEV, longer in the Escape HEV, and only now at the Break Even point, yet GM is Leading and will be profitable with the Hummer EV?
Should MB's worth be set by one quarter? And again, what happens next quarter if we find out GM was hoarding their chips and has a blockbuster Q3? Will you be rallying for her to have a raise?
 

·
Registered
Joined
·
3,217 Posts
GM CEO Mary Barra is again Detroit's highest-paid auto executive. See how much she made
Kalea Hall
The Detroit News

View Comments
General Motors Co. CEO Mary Barra was paid $29.1 million, the automaker reported in a Securities and Exchange Commission filing Friday.
Barra's pay increased from her 2020 compensation of $23.7 million. She maintained her position as the highest paid CEO among the Detroit Three automakers in 2021. Ford Motor Co. CEO Jim Farley received $22.8 million in total compensation during his full year as head of the Dearborn automaker. Stellantis NV CEO Carlos Tavares received $21.5 million in total compensation last year.
GM's Mary Barra once again led Detroit Three CEOs in total compensation in 2021.


Automakers were profitable in 2021 despite constant production shutdowns as a result of supply shortages mostly related to a global shortage of semiconductors or microchips used throughout the vehicle to power everything from the heated seats to the infotainment system.
GM made $10 billion in 2021. Ford Motor Co. in 2021 booked $17.9 billion in profit bolstered by $9.1 billion in gains on its investment in electric-vehicle startup Rivian Automotive Inc. And Stellantis NV made $15 billion during its first year of existence after Fiat Chrysler Automobiles NV and French rival Groupe PSA merged in January 2021.

Crazy Number for All involved but Mary's statement last year.

Barra announced on an earnings call earlier this week that executive compensation would now be tied to hitting EV goals.

"This is the right time to directly link a significant part of the long-term compensation for me and every other GM executive to meeting our EV goals," she told investors. "Starting this year, we have added metrics for EV volumes in North America, EV launch timing and EV launch quality to our existing EBIT-margin and total shareholder return measures."

What are the "Goals"? 27907 Bolts in 2021(0 in the last quarter and only 1200 more than 2020 model year) and 1 Hummer EV.
 

·
Super Moderator
Joined
·
21,811 Posts

Crazy Number for All involved but Mary's statement last year.




What are the "Goals"? 27907 Bolts in 2021(0 in the last quarter and only 1200 more than 2020 model year) and 1 Hummer EV.
Aren't you judging a little early? The first Ultium isn't even 98% on line yet. Not sure what you expect - you need a plant to produce batteries and so far everything is going to plan that they laid out many years ago.

Yes, Ford is ahead, but I'm fine with that as GM's approach is much more cohesive and Ford is 2 or so years out from something comparable. Frustrating right now, but once the product starts coming it'll be fine.
 

·
Banned
Joined
·
22,466 Posts
Discussion Starter · #15 ·
I understand his comment about cutting heads, but what a way to demoralize the people making the vehicles which generate your profits!
And if you listen to Farley, he states that very clearly..............
Additionally, Ford is very-clear, they don't have a goal set to eliminate ICE production, unlike MB.

I hope MB handles GM's situation with more tact. No matter what, heads will be lost, but it's how it is handled..
So not the way GM did it in their 2018/2019 "hair-cutting"?


Should MB's worth be set by one quarter?

And again, what happens next quarter if we find out GM was hoarding their chips and has a blockbuster Q3?

Will you be rallying for her to have a raise?
But, wouldn't that be "just one quarter"? 😐
 

·
Super Moderator
Joined
·
21,811 Posts
And if you listen to Farley, he states that very clearly..............
Additionally, Ford is very-clear, they don't have a goal set to eliminate ICE production, unlike MB.



So not the way GM did it in their 2018/2019 "hair-cutting"?




But, wouldn't that be "just one quarter"? 😐
I'm sure those 8,000 people will be real glad that Ford hasn't publicly stated they are eliminating ICE by 2035.

2018.2019 - GM did it so I can do it too!

Quarter - you didn't take the meaning of my words correctly.
 

·
Banned
Joined
·
4,746 Posts
Ford have been releasing some really nice products Bronco & Maverick, really pleased to see an excellent Q2 results at Ford, a shame sad news to hear of the big 8,000 job losses as it transforms to an EV carmaker.
 
  • Like
Reactions: SP1966

·
Premium Member
Joined
·
37,232 Posts
I don't fault GM for not doing it but... I wish they would. I get it, the Ford Family wants their easy money. Can't blame them for that.
I have to feel very badly for scions of great wealth who have still not achieved billionaire status. Life is tough for the extremely wealthy who were born into it. I feel their pain.
 
  • Haha
Reactions: Extreme4x4

·
Banned
Joined
·
22,466 Posts
Discussion Starter · #20 ·
I'm sure those 8,000 people will be real glad that Ford hasn't publicly stated they are eliminating ICE by 2035.

2018.2019 - GM did it so I can do it too!
So, you didn't listen to what Farley said, which means you didn't understand what I said... 'great'

The runaway inflation is changing the equation for all companies, you act like GM is immune? Did you forget about their Q2 earning report already?

Quarter - you didn't take the meaning of my words correctly.
Lets ignore for a moment that it was H1 (and not a quarter) but you were replying to this story:

Stellantis posts record first half profit margin ahead of EV reveals

And said this...

Should MB's worth be set by one quarter? And again, what happens next quarter if we find out GM was hoarding their chips and has a blockbuster Q3? Will you be rallying for her to have a raise?
So what exactly did you mean?
 
1 - 20 of 99 Posts
Top