Ford Motor Company (NYSE:F) expects its electric vehicle (EV) business to lose $3bln this year but affirmed that it remains on track to achieve its objective of an earnings before interest and taxes (EBIT) margin of 8% by late 2026.
The company said in a statement that its 8% margin target was tied to its planned global EV run rates of 600,000 by the end of 2023 and 2mln by the end of 2026.
It expects the contribution of its Model e first-generation EVs to approach break-even this year, but be more than offset on an EBIT basis by higher investments in new products and manufacturing capacity.
The carmaker reiterated its 10% margin target for company-wide adjusted EBIT by late-2026.
It also affirmed its full-year 2023 guidance of adjusted EBIT of $9bln to $11bln and adjusted free cash flow expectation of about $6bln.
Ford revealed its forecasts ahead of a live-streamed briefing on the company’s new resulting reporting format which is focused on different automotive customers rather than geographic regions.
Ford will now report its results by Ford Blue (iconic gas, hybrid vehicles), Ford Model e (breakthrough EVs), and Ford Pro (commercial products, service).
“We’ve essentially ‘refounded’ Ford, with business segments that provide new degrees of strategic clarity, insight and accountability to the Ford+ plan for growth and value,” Ford CFO John Lawler said.
“It’s not only about changing how we report financial results; we’re transforming how we think, make decisions and run the company, and allocate capital for highest returns.”
The company plans to announce its first-quarter results on Tuesday, May 2.
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