Ford posts full-year net loss, ugly fourth quarter as ‘execution issues’ plague operations

DETROIT – Ford Motor reported an ugly fourth quarter, missing Wall Street’s earnings expectations and falling short of its own full-year guidance by $1.1 billion, as the company reported “execution issues” that plagued operations.

Ford’s fourth-quarter net income was $1.3 billion, $11 billion lower than the same period a year earlier. For the full year, Ford lost $2 billion, nearly $20 billion off its 2021 profit.

“We should have done much better last year,” CEO Jim Farley said in an earnings release. “We left about $2 billion in profits on the table that were within our control, and we’re going to correct that with improved execution and performance.”

Shares of Ford were off by more than 6% during afterhours trading. The stock closed Thursday at $14.32 per share, up 3.8% on the session.

Here’s how Ford performed in the fourth quarter, compared with analysts’ estimates as compiled by Refinitiv:

• Adjusted earnings per share: 51 cents vs. 62 cents estimated
• Automotive revenue: $41.8 billion vs. $40.37 billion estimated

The company’s overall revenue increased 16% to $158.1 billion for 2022, including a 17% uptick in the fourth quarter to $44 billion.

In October, Ford said it expected full-year adjusted earnings before interest and taxes of between $11.5 billion and $12.5 billion. On Thursday it reported 2022 earnings of $10.4 billion, nearly flat year over year.

“‘I’m frustrated’ is an understatement, because the year could have been so much more for us at Ford,” Farley told investors during an earnings call.

Ford CFO John Lawler said Thursday that the company’s disappointing earnings were largely due to execution and supply chain management issues. The company fell short of expected sales by 100,000 units, equating to about $1 billion in missed earnings, he said.

The automaker’s…