Ford Motor Co. posted a $2 billion net loss last year, down from 2021's $17.9 billion in profits that had been bolstered by gains on the automaker's investment in electric-vehicle startup Rivian Automotive Inc.
The Dearborn automaker's 2022 earnings were hit by a $7.4 billion mark-to-market net loss in Rivian and a $2.7 billion impairment from its investment in autonomous company Argo AI, which was dissolved into Ford and partner Volkswagen AG. Still, Ford is expected to pay its hourly workers profit-sharing payouts averaging $9,176 compared to $12,750 at rival General Motors Co.
Ford generated $158.1 billion in revenue, up from $136.3 billion in 2021 but missed its guidance of bringing in $11.5 billion in operating profits, instead generating $10.4 billion. In 2021, Ford's adjusted operating profits came in at $10 billion.
In a news release announcing the results, Ford acknowledged that its fourth-quarter and full-year financial performances were below its expectations but signaled optimism about 2023.
"I'm excited about 2023, which is pivotal for us," CEO Jim Farley said in a statement. "We've got clarity and ambition with the Ford+ plan, a strong team carrying it out, and a lineup of great products and customer experiences that's getting even better."
"We should have done much better last year," he added. "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."
The 2022 results released Thursday came after the Dearborn automaker in the third quarter posted a $827 million loss, dragged down by costs associated with Argo.
In the fourth quarter, Ford made $1.3 billion on revenue of $44 billion. In the fourth quarter of 2021, the company booked $12.3 billion in profit on revenue of $37.7 billion.
General Motors Co. on Tuesday reported it booked $9.9 billion in net income last year, down from 2021's $10 billion despite chronic supply chain woes, rising interest rates and a slowing economy.
The Detroit automaker's revenue for the year was $156.7 billion, up from the $127 billion GM collected in 2021. GM met its projected guidance of earnings before taxes with a record $14.5 billion. In the fourth quarter, GM made $2 billion in net income on revenue of $43 billion. In the fourth quarter of 2021, GM tallied $1.7 billion in net income on revenue of $33.5 billion.
Stellantis NV reports its financial results on Feb. 22.
