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Ford Revenue Breakdown And Sales Growth For 2021

Ford River Rouge Complex, Dearborn, MI. Source: Flickr

Ford Motor Company (NYSE:F), a leading automobile company in the U.S. and also globally, has annual sales reaching more than $127 billion in fiscal 2020.

Ford Motor specializes not only in the design of vehicles but also in the manufacturing as well as marketing and servicing of a full line of Ford and Lincoln’s vehicles such as cars, trucks and SUVs.

Ford is now pursuing leadership positions in the electric vehicle space by investing heavily in the design of electric vehicles and electric batteries, hoping to get a slice of the growing EV market.

Ford brands include Fiesta, Fusion, GT and Mustang while Lincoln brands include MKZ and Continental.

In this article, we will look at several of Ford’s revenue metrics, including the total revenue, automotive revenue, revenue breakdown by region, revenue breakdown by segment as well as revenue growth rates.

Most revenue figures below are presented on a TTM (trailing 12-month) basis to better show the trend of Ford’s revenue growth.

So, just sit tight and read on!

Ford’s Automotive Revenue By Year

Ford's annual automotive revenue

Ford’s annual automotive revenue

* Ford’s automotive revenue by year is extracted from the company’s earning releases.
* FY2021 and FY2022 projected revenue figures are provided by Yahoo Finance.
* Ford’s fiscal year begins on Jan 1 and ends on Dec 31.

Let’s first look at Ford’s automotive revenue by year because it is the most important and largest sales figure for the company.

The automotive revenue dictates the results of other revenue segments.

If the automotive segment dives, so will other business segments, including Ford Credit and Mobility.

That said, the chart above shows that Ford’s automotive revenue has been on a decline since fiscal 2018, reaching a low point of only $116 billion in fiscal 2020.

However, according to Yahoo Finance, Ford’s automotive segment will recover going into FY2021 and FY2022 based on the estimate of 14 analysts.

The projected automotive revenue will be $130 billion in fiscal 2021, a 12% increase from the figure reported in fiscal 2020.

Ford’s automotive revenue is projected to grow even more by fiscal 2022 at a massive amount of $157 billion, a 21% year-on-year growth from 2021.

So, what’s driving the projected automotive revenue growth in fiscal 2021 and 2022?

The most likely catalyst will be Ford’s transition from a fossil fuel vehicle automaker to an all-electric automaker to capture the growing EV market.

Additionally, Ford also will benefit tremendously from the infrastructure plan under the Biden administration in which more trucks and SUVs are reportedly needed when America rebuilds itself.

Ford’s Total Revenue

Ford's total revenue

Ford’s total revenue

* Ford’s toal revenue is extracted from the company’s earning releases.
* TTM figures are calculated based on the sum of the quarterly results on a traling 12-month or 4-quarter basis.
* Ford’s fiscal year begins on Jan 1 and ends on Dec 31.

Ford’s total revenue is the sum of all revenue segments, including those from the automotive, Ford Credit and Mobility segments.

As seen in the chart, between fiscal 2018 and 2021, Ford’s total revenue has been on a declining trend, with fiscal 2020 being the worst year when revenue plunged the most on a TTM basis.

However, Ford’s total revenue seems to have bottomed out in fiscal 4Q 2020 at $127 billion.

Since then, Ford’s total revenue has recovered steadily and started to move higher.

As of 2Q 2021, Ford’s total revenue reached as much as $136 billion on a TTM basis, representing a year-on-year growth rate of nearly 5%.

According to Ford, sales in fiscal 2020 were largely disrupted by the COVID-19 outbreak, as production was shut down and slower demand occurred around the world.

However, Ford’s total sales bounced back significantly in fiscal 2021, driven primarily by higher vehicle demand for large and mid-size trucks and SUVs, as air travel is still pretty much at a standstill during the COVID age.

Ford’s Revenue By Segment

Ford's revenue by segment

Ford’s revenue by segment

* Ford’s revenue breakdown by segment is extracted from the company’s earning releases.
* TTM figures are calculated based on the sum of the quarterly results on a traling 12-month or 4-quarter basis.
* Ford’s fiscal year begins on Jan 1 and ends on Dec 31.

Ford’s reportable business segments include Automotive, Ford Credit and Mobility.

According to the chart, Ford’s automotive is the largest among all business segments, contributing on average, 90% of sales to total revenue.

Ford Credit comes in second and contributes roughly 9% of sales to total revenue.

Ford Mobility’s revenue contribution has been negligible at less than 1% of total revenue.

While Ford’s automotive has been the largest revenue contributor, it has been going downhill on a TTM basis since fiscal 2018.

Similar to the annual automotive revenue which we saw earlier, Ford’s TTM automotive revenue seems to have bottomed out at roughly $116 billion reported in fiscal 4Q 2020.

Since then, Ford’s automotive revenue has slowly recovered and reached as much as $126 billion in fiscal 2Q 2021.

Ford attributed the early decline in automotive sales to the COVID-19 outbreak which had led to most of its manufacturing facilities all over the world being temporarily shuttered.

However, Ford’s automotive sales were seen bouncing back in fiscal 2021, driven largely by the pent-up demand for the company’s large and mid-size SUVs and trucks.

Similarly, Ford Credit’s revenue also has been on a slow decline, but not as severe as that of the automotive segment.

As of 2Q 2021, Ford Credit’s revenue decreased 8% year-on-year to $10.8 billion on a TTM basis.

Unlike the automotive segment, we have yet to see a recovery in Ford Credit’s revenue.

Ford’s Automotive Revenue By Region

Ford's automotive revenue by region

Ford’s automotive revenue by region

* Ford’s revenue breakdown by region is extracted from the company’s earning releases.
* TTM figures are calculated based on the sum of the quarterly results on a traling 12-month or 4-quarter basis.
* Ford’s fiscal year begins on Jan 1 and ends on Dec 31.

Ford’s reportable regions include North America, Europe, South America, China and the International Market Group (IMG).

Based on the chart, North America contributed the largest portion at more than $80 billion on a TTM basis to Ford, taking up slightly more than 65% of the total automotive revenue in fiscal 2020.

Ford Europe comes in second at $25 billion reported in fiscal 2Q 2021, contributing around 20% of sales to Ford’s automotive revenue.

Automotive revenue from South America and China seems negligible compared to that of North America and Europe.

While Ford North America and Europe automotive revenue has declined, the downtrend has reversed in 2021 and automotive revenue was seen moving higher post-2020.

As of fiscal 2021 Q2, Ford’s automotive revenue in North America reached $85 billion, a record high since 2020.

Similarly, Ford’s automotive revenue from Europe also reached a new high at $25 billion as of fiscal 2021 Q2, representing a year-on-year growth rate of 9%.

Ford’s Automotive Revenue By Region – Only South America, China and IMG

Ford's automotive revenue by region (China and South America)

Ford’s automotive revenue by region (China and South America)

* Ford’s revenue breakdown by region is extracted from the company’s earning releases.
* TTM figures are calculated based on the sum of the quarterly results on a traling 12-month or 4-quarter basis.
* Ford’s fiscal year begins on Jan 1 and ends on Dec 31.

To clearly show Ford’s automotive revenues from China, South America and IMG, I have stripped off revenues from North America and Europe as shown in the chart above

Ford’s IMG or International Market Group is a new business segment that consists of all revenue segments for the rest of the world not mentioned in any of the segments.

As seen, Ford IMG automotive revenue seems to have recovered tremendously post-COVID age and reached as much as $9 billion in fiscal 2Q 2021 on a TTM basis, a level that was only seen prior to fiscal 2020.

Ford China seems to have done poorly in terms of TTM automotive revenue growth.

In the last 3 years, Ford China’s automotive revenue has been on a downward trend, reaching only $3.2 billion as of fiscal 2021 2Q on a TTM basis, a record low for the company since 2018.

While Ford China’s revenue has ticked higher during 4Q 2020, the uptrend did not hold up and was subsequently overpowered by a downtrend.

In contrast, Ford South America’s automotive revenue rebounded significantly in fiscal Q2 2021 to $2.5 billion, a first sequential rebound in more than 3 years.

Only time will tell whether the recovery in South America can persist in subsequent quarters.

Ford’s Revenue By Segment YoY Growth Rates

Ford's revenue by segment YoY growth rates

Ford’s revenue by segment YoY growth rates

* Ford’s revenue YoY growth rates come from the author’s own calculations.

According to the chart, Ford’s revenue by segment YoY growth was the strongest in fiscal 2Q 2021, having a YoY growth rate of 40% in both automotive and total revenue.

However, Ford Credit’s revenue YoY growth rate was still in the red at -5% in fiscal 2Q 2021 but was significantly smaller than the decline reported in fiscal 2020.

Ford’s Revenue by Region YoY Growth Rates

Ford's revenue by region YoY growth rates

Ford’s revenue by region YoY growth rates

* Ford’s revenue YoY growth rates come from the author’s own calculations.

Similarly, Ford’s revenue by region grew the most in fiscal 2Q 2021 in all regions except for China.

As seen, Ford IMG grew its automotive revenue the most at nearly 150% year-over-year compared to the same quarter a year ago.

Ford South America comes in second, also at more than 100% YoY growth rate.

Ford North America and Europe are also doing great in terms of YoY growth rates at 37% and 55%, respectively, in 2Q 2021.

Ford China reported a decline in YoY growth rate at -32% in 2Q 2021 for its automotive revenue.

Conclusion

In summary, Ford saw its revenue tumbling the most in all business segments and in all regions in fiscal 2020.

However, revenue decline seems to have reversed going into fiscal 2021 but they are still below the pre-pandemic level.

Has Ford’s stock price reacted to the revenue decline? Or has it rebounded already?

Whatever it is, 2020 represents one of Ford’s worst years when it is heavily indebted while seeing its sales plunging to the lowest.

Nevertheless, Ford may survive through the crisis or even return stronger, judging from the new product lineup in 2021/2022 that it is planning to roll out.

Ford’s recent electric vehicles bet may just be the perfect catalyst that the company has been looking for.

For now, just keep your finger crossed and come back to this article every 3 months when it’s updated or sign up to our newsletter for the latest updates!

Credits and References

1. All financial figures in this article were obtained and referenced from Ford’s quarterly and annual filings which are available in the following location: Ford shareholders page.

2. Featured images in this article are used under the creative commons license and sourced from the following websites: Thomas Hawk and Anathea Utley.

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Disclosure

The content in this article is for informational purposes only and is neither a recommendation nor a piece of financial advice to purchase a stock.

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