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Ford Media Center
NEW YORK, March 23, 2023 – Ford today will walk investors, analysts and others through how the company is now organized and operating – and will report financial results – based on three new global business segments that are focused on different automotive customers, rather than by geographic regions.
Leaders will also summarize ways that the segments will deliver exceptional value to their respective customers and, together, for other Ford stakeholders: Ford Blue with iconic gas and hybrid vehicles, Ford Model e via breakthrough digital capabilities and electric vehicles, and Ford Pro with products and services to help commercial customers maximize their operations.
The “teach-in” event will be held at 10:00 a.m. Eastern Time at the New York Stock Exchange and streamed, “live” and on replay, via shareholder.ford.com.
“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,” 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.”
Lawler said the teach-in will help investors and analysts develop new models for projecting, tracking and valuing the individual and collective performances of Ford’s new segments, after decades of the business being managed and reporting financial results by regional markets.
Ford Controller Cathy O’Callaghan will highlight how three principles guided the new segmentation:
1) Fairly representing the business models of each segment
2) Giving the Ford Blue, Ford Model e and Ford Pro teams both the latitude and accountability for their success, and
3) Being easy to understand and simple to execute, so that everyone can see how Ford is generating value for customers and other stakeholders.
“This wasn’t a simple proforma spreadsheet exercise,” O’Callaghan said. “It represents nearly a year of disciplined work by hundreds of Ford people to help us capture the huge strategic opportunity of Ford+ and provide unique transparency into our business.”
During the event and in supporting material available online – including recast segment results for 2022 by quarter and full-year 2021 (summary attached) – Ford will explain how assets are assigned and revenue and costs are reported across the segments. The company will also describe accounting for products supplied between segments. For example, vehicles sold by Ford Pro to its commercial customers will be manufactured by Ford Blue or Ford Model e.
Additionally, Ford today will:
Ford plans to announce first-quarter results on Tuesday, May 2.
On May 22, Ford will host its next Capital Markets Day in Dearborn. On that day, executives will provide extensive updates on the strategic potential and progress of Ford+ and the company’s rapidly expanding capabilities in software and services, along with deep dives into plans and key performance indicators for each of the business segments.
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Adjusted EBIT is a non-GAAP financial measure. Ford does not provide guidance on a net income basis, the comparable GAAP measure. Ford’s net income in 2023 will include potentially significant special items that have not yet occurred and are difficult to predict with reasonable certainty, including gains and losses on pension and OPEB remeasurements.
Adjusted free cash flow is a non-GAAP financial measure. Ford does not provide guidance for net cash provided by/(used in) operating activities, the comparable GAAP measure. Ford’s net cash provided by/(used in) operating activities in 2023 will include potentially significant special items that have not yet occurred and are difficult to predict with reasonable certainty, including cash flows related to the Company's exposures to foreign currency exchange rates and certain commodity prices (separate from any related hedges), Ford Credit's operating cash flows, and cash flows related to special items, including separation payments, each of which individually or in the aggregate could have a significant impact to our net cash provided by/(used in) our operating activities.
Contribution margin is calculated by subtracting material, warranty, freight and duty expenses from revenue.
Cautionary Note on Forward-Looking Statements
Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptions by our management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, including, without limitation:
We cannot be certain that any expectation, forecast, or assumption made in preparing forward-looking statements will prove accurate, or that any projection will be realized. It is to be expected that there may be differences between projected and actual results. Our forward-looking statements speak only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events, or otherwise. For additional discussion, see “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022, as updated by our subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Ford Motor Company (NYSE: F) is a global company based in Dearborn, Michigan, committed to helping build a better world, where every person is free to move and pursue their dreams. The company’s Ford+ plan for growth and value creation combines existing strengths, new capabilities and always-on relationships with customers to enrich experiences for customers and deepen their loyalty. Ford develops and delivers innovative, must-have Ford trucks, sport utility vehicles, commercial vans and cars and Lincoln luxury vehicles, along with connected services. The company does that through three customer-centered business segments: Ford Blue, engineering iconic gas-powered and hybrid vehicles; Ford Model e, inventing breakthrough EVs along with embedded software that defines exceptional digital experiences for all customers; and Ford Pro, helping commercial customers transform and expand their businesses with vehicles and services tailored to their needs. Additionally, Ford is pursuing mobility solutions through Ford Next, and provides financial services through Ford Motor Credit Company. Ford employs about 173,000 people worldwide. More information about the company and its products and services is available at corporate.ford.com.