Written by Cláudio Afonso | LinkedIn | X
Ford Motor Company reported on Monday its third quarter earnings results posting a third-quarter loss of $1.2 billion in its electric vehicle (EV) unit, pushing year-to-date losses for the segment to $3.7 billion as it faces “competitive market dynamics” and “industry-wide pricing pressure.”
Sales for Ford’s Model e division, which includes its EV operations, declined by 11% during the quarter.
The company cited “competitive market dynamics” as a key factor. Revenue for the unit was down 33% year-over-year, reflecting “industry-wide pricing pressure and lower volume.”
The Model e division’s results for the third quarter also revealed a negative EBIT margin of -104.4%, with EV revenue reaching $1.2 billion, down 33% from the previous year.
In total, Ford reported revenue of $46.2 billion for the quarter, down from $47.8 billion in the previous quarter. Net income slipped to $900 million, or 22 cents per share, from $1.2 billion, or 30 cents per share, in the same period a year earlier.
Ford’s battery electric vehicle (BEV) sales in the third quarter totaled 23,400 units, with September U.S. sales reaching around 6,300 units, down 18% from the previous year.
The automaker also adjusted its full-year guidance, now expecting adjusted earnings before interest and taxes (EBIT) of “about $10 billion,” revised from the previous range of $10 billion to $12 billion.
Ford lowered EBIT expectations for its Ford Blue segment as well, now projecting “about $5.0 billion” from an initial range of $6.0 billion to $6.5 billion.
Written by Cláudio Afonso | LinkedIn | X
