Ford Reports Impressive Q2 2022 Financial Results Despite Supply Chain Constraints

UTC by Ibukun Ogundare · 3 min read
Ford Reports Impressive Q2 2022 Financial Results Despite Supply Chain Constraints
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The Q2 2022 report is a turnaround for Ford, which saw a net loss of $3.1 billion in Q1.

Automobile manufacturer Ford (NYSE: F) was able to achieve solid earnings in Q2 2022 despite the challenges its rivals faced in the same period. Revenue for the quarter came in at $40.2 billion, representing a 50% addition YoY. Adjusted operating income also grew 3X to $3.7 billion. In addition, Ford said in its Q2 2022 earnings report that it saw $2.9 billion in operating cash flow. Meanwhile, adjusted free cash flow was $3.6 billion. With the company accounting for solid profits, it raised its quarterly dividend to 15 cents per share. Adjusted earnings per share rose from $0.12 in Q1 2021 to $0.68 in Q2 2022. 

Ford Sees Solid Earnings in Q2 2022

The Q2 2022 report is a turnaround for Ford, which saw a net loss of $3.1 billion in Q1. Last quarter, Ford amassed losses due to a fall in the valuation of its stake in Rivian. The automotive industry has been impacted by supply chain disruptions over the past few months. The constraint also affected Ford, resulting in losses in its China business. However, the company was able to offset the downturn by sales growth in Europe and North America. Sales in the US jumped 1.8% YoY, and Europe’s sales surged 22% to 222,000 vehicles. 

Chief Financial Officer John Lawler said that increased sales helped Ford with modest profit in Europe. He also revealed that the high sales helped the firm survive through the China-fueled disruptions in the supply chain. Wholesale shipments in China dropped 24% to around 114,000 vehicles. 

CEO Jim Farley said concerning the Q2 2022 performance:

“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. We’re giving customers great experiences and value, improving our profitability and making Ford the next-generation transportation leader.” 

Ford’s Full-Year Guidance

Looking ahead, the company is confident in finishing the year strong. The CFO said the full-year guidance outlook remains adjusted EBIT of $11.5 billion to $12.5 billion. The figures represent a 15% to 25% addition from 2021. Also, Ford expects an adjusted free cash flow of $5.5 billion to $6.5 billion in the year. 

“The company’s full-year 2022 guidance continues to assume 10% to 15% growth in vehicle wholesales from 2021, along with significantly higher profit 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.”

At premarket trading, Ford Motor Company is currently up 5.38% to $13.90. The past month has seen the company grow 18.51% and an additional 1.46% in the last five days. 

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Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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