Daiwa reported that Ford Motor (F) recently disclosed that non-GAAP in the fourth quarter of 22Earnings per shareIt was $0.51, below the expectation of $0.64. Business in North America and Europe fell short of expectations during the period. Ford now expects non-GAAP earnings before interest and tax (EBIT) in 2023 to be between $9 billion and $11 billion, just below the $10.4 billion reported in 2022. Corporate EBIT for the period was $2.6 billion, well below the $3.6 billion corresponding to the $11.5 billion annual guidelines. The bank maintained its "outperform" rating.
The company said the decline was mainly due to insufficient production, but the bank believes its cost performance is also a drag. The devaluation of the pound has also hurt Europe's performance. The China business lost $205 million, flat from the previous month, in line with expectations. In addition, Ford Credit's earnings were lower than expected at $191 million, reflecting the high depreciation rate for rented vehicles.
Ford's profit before interest and tax in 2023 is expected to be between $9 billion and $11 billion, down slightly from the median in 2022, the bank said. Management expects the drag from a $2 billion drop in pension income (pension income) and $1.4 billion in credit income to be offset by higher sales and lower costs ($1 billion could be released by cutting logistics costs). Ford predicts that by 2023, the whole yearFree cash flowThe total will be about $6 billion, while Ford reports free cash flow of $9.1 billion in 2022. This decline can be attributed to an increase in capital expenditure of $1.7 billion and the failure of Ford Credit.Share out dividends.