This story has been updated with additional information.
Despite a difficult year dealing with the semiconductor issue, Ford Motor Co. reported net income of $17.9 billion for all of 2021 on revenue of $136.3 billion — a marked turnaround from 2020.
The automaker reported its fourth quarter and full-year results, and a strong final quarter brought the year home. Fourth-quarter results include revenue of $37.7 billion, net income of $12.3 billion, adjusted EBIT of $2 billion.
The full-year results were impacted by a Q1 gain from its stake in Rivian. The automaker’s adjusted EBIT came in at $10 billion — the midpoint of $9.6 billion to $10.6 billion guidance range, after reclassifying Q1 Rivian gain.
“Financial performance is obviously critical,” said President and CEO Jim Farley in a statement. “We’re also proud that customers see how Ford is taking EVs mainstream, and have already ordered or reserved more than 275,000 all-electric Mustang Mach-E SUVs, F-150 Lightning pickups and E-Transit commercial vehicles – and we’re breaking constraints to deliver every one of them as fast as we can.”
The company offered its full-year 2022 guidance with its adjusted EBIT to be between $11.5 billion and $12.5 billion — a 15% to 25% improvement compared to 2021.
Strong performance
As has been the case for some time, Ford’s North American business unit led the profitability charge for the fourth quarter and full year. In fact, for all of 2021, Ford’s EBIT margin in North America was 8.4% for the year — a number it hit a year ahead of schedule, Lawler noted.
Not surprisingly, Ford officials pointed to the popularity of its vehicles as the reason for the uptick, CEO Jim Farley noting, “without question, the most exceptional product line-up in my 30-plus years in this industry.”
In Q4, strong demand for Bronco and Maverick – the North America SUV and truck of the year, respectively – along with Mustang Mach-E and Bronco Sport contributed to a two-point U.S. share gain, to 15%, making Ford the country’s top-selling automaker.
Even where the company’s struggled for some time — China — there is light at the end of the tunnel. The company lost money there in Q4, but is predicting profitability in 2022 — a big change. Much of that is being attributed to locally build Lincolns. In fact, sales volume for Lincoln was higher in China than in the U.S. for the first time, and full-year sales were up 50% from 2020, the company noted.
Stock hit
Despite the news coming after market close, Ford’s stock fell slightly, starting to tumble mid-day before closing at $19.89 a share. However, in the afterhours session, the trend continued, falling another 4% in the wake of the posted numbers.
The numbers likely reflect displeasure about missing analysts estimates for fourth quarter income. The company reported adjusted earnings per share of 26 cents during the final stanza of 2021, which was 19 cents lower than analysts estimates.
Ford CFO John Lawler noted the miss during a call with the media after results were release, but noted the company was outperforming in other metrics but noted, “We were right at the midpoint of our guidance.” He noted that after the company advised in Q3 2021 its volume would be up about 10% and “that’s about where we landed, but some thought that we could do much better on the volumes.”
Lawler said the company was limited by supply issues attributed to the rise of the Omicron variant of COVID-19 as well as the ongoing semiconductor shortages that constrained the company’s vehicle production.