China Economic Net, July 26th (Reporter Jiang Zhiwen) Yesterday, Ford Motor Company released its financial report showing that its revenue for the second quarter of 2024 was $47.8 billion, a year-on-year increase of 6%; Net profit of 1.8 billion US dollars, adjusted EBIT of 2.8 billion US dollars.
In addition, Ford's operating cash flow for the second quarter was $5.5 billion, with adjusted free cash flow of $3.2 billion; The balance sheet is very eye-catching, with cash close to $27 billion and liquidity of $45 billion.
Jim Farley, President and CEO of Ford Motor Company, stated that the company's business highlights in the second quarter were due to the continued promotion of the customer-centric Ford+program. Ford is enhancing its strategic and financial resilience through more planned capital allocation, laying the foundation for long-term profitable growth.
The Ford+program is steadily advancing, with product quality continuously improving. The Ford Pro commercial vehicle business unit has achieved new highs in performance and is far ahead of all our business units, "Jim Farley added. Through more transparent division of responsibilities, different teams can focus on different customer needs, allowing us to make better decisions and create greater value.
Looking back at the first half of the year, the revenue growth brought by Ford's new models was mainly due to the excellent sales performance of the all-new Ford F-150 pickup truck and Transit commercial multi-purpose vehicle. In addition, the increase in product warranty costs has had a certain impact on the company's profitability, but the improvement in the quality of new products has also driven customer satisfaction and overall operational performance.
The latest data shows that Ford became one of the brands with the largest increase in the 2024 J.D. Power US New Car Quality Research ranking last month, jumping 14 places to rank 9th. Among them, Ford Bronco Sport was rated as the best compact SUV; The Lincoln brand has also achieved an increase in ranking through continuous improvement of quality.
Our internal evaluation also shows that the company's product quality is constantly improving. The 90 day after-sales failure rate has significantly decreased, "said John Lawler, Vice Chairman and Chief Financial Officer of Ford Motor Company." We still have a lot of work to do in improving quality, reducing costs, and increasing complexity. But the team is full of confidence and we are moving in the right direction.
In terms of specific business units, the adjusted pre tax profit of Ford Pro commercial vehicles in the second quarter was $2.6 billion, a year-on-year increase of 7%, with a profit margin of 15%; Revenue was $17 billion, an increase of 9%. In addition, the subscription volume of paid software services provided by Ford Pro commercial vehicles has increased by 35%.
Jim Farley believes that commercial customers typically adopt various new technologies, such as connected cars and electric vehicles, earlier than individual consumers. Therefore, Ford+'s customer-centric business unit strategy demonstrates the enormous value it brings to customers and the company.
Our capabilities in electric vehicles and software services have established a competitive advantage for Ford Pro, "Jim Farley added." For enterprise customers, regardless of their size, our service capabilities can help them optimize their own operations. Afterwards, we will provide equal value to Ford Blue and Ford Model e customers. This will also make us stand out from traditional and emerging car manufacturers.
In contrast, the wholesale volume and revenue of Ford Blue's fuel vehicle business unit increased by 3% and 7% respectively, with revenue reaching $26.7 billion; The sales of hybrid models increased by 34% year-on-year, accounting for nearly 9% of Ford's global sales, which is 2 percentage points higher than the same period last year. In the future, the company's most popular models will also launch more hybrid versions.
In addition, the current electric vehicle models of Ford Model e's electric vehicle business unit faced downward pressure on industry prices and a decline in wholesale volume in the second quarter. Although the business unit reduced costs by $400 million compared to last year, its pre tax profit still lost $1.1 billion. Meanwhile, Ford Credit's pre tax profit for the second quarter was $343 million.
Looking ahead to the whole year, Luo Lixiang stated that the Ford+plan has laid the foundation for the company's profitability and long-term development, while Ford Motor Company is also committed to achieving stable operations throughout 2024. Ford expects its adjusted pre tax profit for the full year to remain at $10 billion to $12 billion, and its adjusted free cash flow forecast to increase by $1 billion to $7.5 billion to $8.5 billion