Ford Reports Mixed Q3 2024 Results with 5% Revenue Growth, Declining Profitability

Ford Motor Company reported its financial results for the third quarter and the first nine months of 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.

For Q3 2024, Ford's total revenues reached $46,196 million, a 5% increase from $43,801 million in Q3 2023. However, operating income declined to $880 million from $1,129 million year-over-year. Net income for the quarter was $896 million, down from $1,173 million in Q3 2023, with basic earnings per share decreasing to $0.22 from $0.30. The decline in profitability was attributed to various factors, including a $329 million decrease in revenue due to changes in estimates of variable consideration, such as marketing incentives.

In the first nine months of 2024, total revenues increased to $136,781 million from $130,229 million in the same period of 2023. However, net income fell to $4,063 million from $4,852 million, with basic earnings per share dropping from $1.22 to $1.02. The company recognized $1.3 billion of unearned revenue in the first nine months of 2024, up from $1.1 billion in the same period of 2023.

Ford's cash and cash equivalents as of September 30, 2024, were $23,449 million, a decrease from $24,862 million at the end of 2023. Total assets increased to $287,047 million, while total liabilities rose to $242,708 million, resulting in total equity attributable to Ford of $44,315 million, up from $42,773 million at year-end 2023.

Strategically, Ford has made significant moves, including the acquisition of Auto Motive Power (AMP), an energy management startup, and the planned sale of its equity interest in Ford Sales and Service Korea Company. The company also faced challenges, including a $1.1 billion expense in Q3 2024 related to lower-than-anticipated electric vehicle adoption rates and pricing pressures, which included the cancellation of an all-electric SUV program.

Segment performance varied, with Ford Blue reporting revenues of $25,587 million, a 3% increase, while Ford Model e saw a 33% revenue decline to $1,758 million. Ford Pro's revenue increased by 13% to $13,829 million. The company anticipates continued challenges in the electric vehicle market, which may impact its strategic direction and compliance with regulatory standards.

Overall, Ford's financial results reflect a complex landscape of growth in revenues but declining profitability, alongside strategic adjustments in response to market conditions.