Ford backs FY23 adjusted EBIT view $9B-$11B

The company said, "Additionally, Ford will: Reiterate a 10% margin target for company adjusted EBIT (earnings before interest and taxes) by the end of 2026; Confirm that, among the new business segments, Ford Blue and Ford Pro are both solidly profitable and well-positioned for growth; Repeat its 8% EBIT margin objective by late 2026 for Ford Model e, which is tied to planned global electric vehicle production run rates of 600,000 units by the end of 2023 and two million by the end of 2026; Say that the contribution margin of Ford Model e’s first-generation EVs – representing revenue minus certain variable costs – is expected to approach break-even this year, but be more than offset on an EBIT basis by higher investments in new EV products and manufacturing capacity; Reiterate that it anticipates full-year adjusted EBIT to be $9B to $11B – and adjusted free cash flow to be about $6B- based on assumptions outlined in the fourth-quarter 2022 earnings release on Feb. 2, and provide 2023 segment-level EBIT expectations: about $7B for Ford Blue, a modest improvement from last year; a full-year loss of about $3B for Ford Model e; and EBIT approaching $6B for Ford Pro, nearly twice its 2022 earnings."