Ford raises 2023 profit outlook but sees bigger EV loss
NEW YORK
Ford lifted its full-year forecast on July 27 after quarterly earnings nearly tripled on strong vehicle pricing in conventional autos that offset losses in electric vehicles (EV).
Shares of the big U.S. automaker initially climbed on results flattered by higher auto sales in its internal combustion engine (ICE) vehicle business, but later retreated as the company 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.
However, Ford reiterated the company's commitment to show positive EV profitability by the end of 2026.
EV adoption "is not going to be a straight line," Lawler said at a briefing with reporters. "We have flexibility. We are going to optimize."
