Strategic upgrades to Ford+ ‘s growth plan further solidified fy2021 results
Recently, Ford Motor Company announced 2021 full year financial results.The overall performance was solid despite the impact of continued supply chain disruptions.2021 was a year of rapid global growth for the ambitious Ford+ initiative, which achieved both business and share price growth and established the company as an industry leader in the smart connected ELECTRIC vehicle market.”Strong financial performance is an important cornerstone of business development.”Jim Farley, President and CEO of Ford Motor Company, said, “We are also very proud that Ford is becoming the mainstream brand of choice for electric vehicle consumers with our three iconic electric vehicles, Mustang Mach-E, F-150 Lightning and E-Transit,Cumulative orders and pre-orders have exceeded 275,000 units.We are pushing the envelope and doing everything possible to deliver these vehicles to every customer as quickly as possible.”Ford Motor became the second-largest seller of electric vehicles in the United States in 2021, thanks to widespread consumer interest, in what Jim Farley called “an important first step toward becoming a true leader in electric vehicles.”Earlier, he said the company plans to double its annual production capacity of all-electric vehicles to at least 600,000 by 2023, and that all-electric models will account for more than 40% of the company’s total sales by 2030.In 2021, Ford motor’s net revenue reached $17.9 billion and adjusted EBIT was $10 billion, both of which achieved year-on-year growth.Q4 revenue was $37.7 billion, net income was $12.3 billion, and adjusted EBIT was $2 billion, both higher than the same period in 2020.Adjusted eBITDA was well within the $9.6 billion to $10.6 billion guidance Ford issued Oct. 27.After Rivian’s initial public offering on November 10, Ford reclassified gains on its investment in Rivian in the first quarter of 2021 as special items.Ford ended the fourth quarter with more than $36 billion in cash and $52 billion in liquidity, all of which include gains on Its investment in Rivian.By the end of 2021, the investment earned $10.6 billion.In addition, ford consolidated its balance sheet in the fourth quarter by buying back and redeeming$7.6 billion of high-cost debt, while significantly reducing ongoing interest expense costs.Ford’s performance in North America illustrates how the company is winning the hearts and minds of consumers and growing its business, said Jim Farley. “There’s no doubt that’s because of our products, which are the most outstanding product lineup I’ve seen in my 30-plus years in the industry.”Ford’s eBIT margin in North America was 7.1% in the fourth quarter and 8.4% for all of 2021.Ford’s market share rose two percentage points to 15% in the fourth quarter, driven by continued demand for the Ford Bronco and Ford Maverick, which just won the SUV and Truck of the Year honors in North America, and strong performance from the Mustang Mach-E and Bronco Sport.Making Ford the no. 1 selling automaker in the United States.As one of the global “two pillar” markets alongside Ford’s North American market, Ford China delivered a total of 624,802 vehicles in 2021, up 3.7% year on year.The homegrown Lincoln brand has played a key role in Ford’s turnaround in China and has given the company an important foothold in the competition in the world’s largest luxury car market.In 2021, Lincoln brand sales in China surpassed those in the US market for the first time, with annual sales growth of nearly 50 percent year on year.Up to now, orders for the new Lincoln Zephyr have exceeded 3,000 units, and a series of brand new products are coming soon.In 2021, Ford China’s electrification and intelligence have entered a new stage. The domestic Ford Mustang Mach-E was officially delivered in December last year, bringing the driving passion and fun of intelligent pure electric SUV to Chinese electric vehicle users for the first time.Ford also pioneered a series of disruptive business model, including the opening 25 Ford Select high-end intelligent electric cars exclusive brand city shop up and running, the first adopts the direct sales model, and the digital experience by focusing on full-time user relationship, and more convenient charging network and experience, to accelerate the Ford brand electrification transformation.In addition, Ford China further focuses on the needs of Chinese consumers by launching a number of new models.Ford EVOS, the first strategic model of the new era, began to be delivered at the end of November last year. Its intelligent technology sweeping the same level has comprehensively improved the driving pleasure, won the love of many young consumers, and sales continue to climb.The high-energy pioneer SUV Ford Collar has also opened pre-sale, with young dynamic grid, wide and comfortable space, for Chinese SUV consumers to provide a more diversified choice.At the beginning of this year, the new generation Ford Mondeo was officially unveiled at the same time with the new Ford Design Center in China, fully integrating the essence of Ford design and the aesthetic cognition of contemporary Chinese consumers, presenting the latest progress of combining forward-looking technology and personalized experience, and will be launched within this year.Ford China is committed to delivering innovative and forward-looking products to the world’s largest automotive consumer market, in order to better fulfill the promise of “more Ford, more China”.Ford motor co. ‘s (FORD) 2022 outlook has been boosted by consumer enthusiasm for a range of all-new models.This year, the Bronco and Maverick, two award-winning hits, will go into full production, as will the E-Transit and f-150 Lightning pickups, further expanding the lineup of best-selling all-electric vehicles led by the Mustang Mach-E.Ford Motor Co. ‘s CHIEF financial Officer John Lawler said the company expects a stronger 2022 adjusted EBIT of $11.5 billion to $12.5 billion, up 15% to 25% from a year earlier.The high end of the adjusted EBIT range will achieve an 8 per cent margin, which will achieve the company’s target one year ahead of schedule.Adjusted free cash flow for 2022 is expected to be in the range of $5.5 billion to $6.5 billion.