Ford raises 2023 profit outlook but sees bigger EV loss

The National Times - Ford raises 2023 profit outlook but sees bigger EV loss

ECONOMY 27.07.2023

Ford raises 2023 profit outlook but sees bigger EV loss / Photo: © AFP/File

Ford lifted its full-year forecast Thursday after quarterly earnings nearly tripled on strong vehicle pricing in conventional autos that offset losses in electric vehicles (EV).

Change text size:

Shares of the big US automaker pushed higher on results flattered by higher auto sales in its internal combustion engine (ICE) vehicle business even as it signaled near-term losses in EVs would be bigger than previously thought.

Profits in the second quarter were $1.9 billion, nearly triple the year-ago level on revenues of $45 billion, 12 percent.

Chief Financial Officer John Lawler described the period as "a really strong quarter," saying the raised forecast reflected stronger than expected pricing through the first half of 2023.

But Ford also now sees operating losses in its EV business of $4.5 billion, up from the prior $3 billion.

The automaker slowed its timeframe for ramping up EV production, pushing back the timeframe to reach 600,000 per year in 2024 instead of this year.

EV adoption "is not going to be a straight line," Lawler said. "We have flexibility. We are going to optimize."

On July 17, Ford announced it was temporarily shutting its Rouge electric plant in Michigan as part of a plan to boost production of the F-150 Lightning pickup.

Ford also announced price cuts of as much as $10,000 on the vehicle, following several similar pricing actions at Tesla.

Ford's EV experience shows "we have to have very competitive products from a cost standpoint," said Lawler, who pointed to surveys that show 20-30 percent of consumers express interest in EVs but only seven percent end up buying.

Ford now expects 2023 earnings before interest and taxes -- a measure of profitability -- of between $11 and $12 billion, up from $9 to $11 billion.

Lawler said the company expects higher costs due to a new labor contract with the United Auto Workers, but did not release estimates.

Shares of Ford rose 0.8 percent to $13.84 in after-hours trading.

W.Phillips--TNT

Bilfinger Reports Surge in Orders Amid Profitability Pressures

German industrial services group Bilfinger has reported one of its strongest quarterly order intakes in a decade, with new business rising 25% to £1.2 billion in the third quarter. The surge was driven by energy sector demand, though the company noted that profitability declined as customers delayed investment decisions amid economic uncertainty.

Social Security Tax by State in 2026: Which States Tax Retirement Benefits?

As of 2026, eight U.S. states continue to levy taxes on Social Security retirement benefits, creating a complex financial landscape for retirees. While the Congressional Budget Office estimates that just over half of all beneficiaries will pay federal income tax on their payments, state-level rules vary significantly. Income-based exemptions in these states offer some relief, but the final amount retirees keep depends on a combination of federal thresholds, other retirement withdrawals, and specific state regulations.

Drive Finance Raises EGP 1.5bn via Bond Issuance for Expansion

Drive Finance, the non-bank financial services arm of GB Corp, has successfully closed a EGP 1.5 billion bond issuance with a 13-month maturity. The company stated that the transaction is designed to diversify funding sources and support expansion in its core consumer finance and factoring operations.

First-time boat buyers advised to assess full ownership costs

Buying a first boat is one of those purchases that arrives with a particular quality of excitement that makes careful financial planning feel like an obstacle rather than a preparation. The boat is there, it’s the right size, it’s in reasonable condition, and the idea of being on the water by the weekend is considerably more compelling than the idea of spending another two hours reading about comparison rates.