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Ford Revenue Breakdown And Projects Sales For 2022

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 $136 billion in fiscal 2021.

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.

In this context, Ford produces a variety of cars, trucks and SUVs.

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

While Ford Motors is well known for its gas-guzzlers such as the F-150 pickups, the company is now going all-in into the electric vehicle space, investing heavily in the design of electric vehicles and electric batteries, hoping to get a slice of the growing EV market.

In this article, we will look at several of Ford’s revenue metrics, including the total revenue and projected total revenue for 2022, automotive revenue and projected automotive revenue for 2022, revenue breakdown by region, revenue breakdown by segment as well as revenue growth rates.

Let’s start with the following topics!

Ford’s Total Revenue By Year

Ford's total revenue by year

Ford’s total revenue by year

* Ford’s total revenue by year is extracted from the company’s earning releases.
* Projected revenue for fiscal 2022 is calculated by the author based on the guidance provided by Ford Motors.
* Ford’s fiscal year begins on Jan 1 and ends on Dec 31.

Ford Motors is projected to earn an estimated revenue of $160 billion for fiscal 2022, a rise of 18% from fiscal 2021.

This revenue estimate is based on Ford Motors’ guidance provided in the 2021 4Q earnings release.

Ford projected that it will earn $12 billion in adjusted EBIT in fiscal 2022, an increase of more than 20% compared with fiscal 2021.

Based on an adjusted EBIT margin of around 7.5%, Ford’s total revenue will come in at $160 billion for fiscal 2022.

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.
* Projected revenue for fiscal 2022 is calculated by the author based on the guidance provided by Ford Motors.
* Ford’s fiscal year begins on Jan 1 and ends on Dec 31.

Similarly, Ford’s automotive revenue is projected to increase to $148 billion in fiscal 2022, up 17% from fiscal 2021.

The automotive revenue estimate is based on Ford’s automotive EBIT which comes in at nearly $9 billion USD in fiscal 2022 and a projected 6% automotive EBIT margin.

Ford’s Total Revenue By Quarter

Ford's total revenue

Ford’s total revenue

* Toal revenue by quarter in the chart is presented on a TTM basis.
* 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 4Q 2021, Ford’s total revenue reached as much as $136 billion on a TTM basis, representing a year-on-year growth rate of 7%.

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 Breakdown By Segment

Ford's revenue by segment

Ford’s revenue by segment

* Revenue by segment in the chart is presented on a TTM basis.
* 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 flat on a TTM basis since fiscal 2018.

As of fiscal Q4 2021, Ford’s automotive revenue came in at $126 billion on a TTM basis, up 9% from the same quarter a year ago.

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 4Q 2021, Ford Credit’s revenue decreased 9% year-on-year to $10 billion on a TTM basis, a record low for this business segment.

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

* Revenue by region in the chart is presented on a TTM basis.
* 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 nearly $90 billion on a TTM basis to Ford, taking up nearly 70% of the total automotive revenue in fiscal 2021.

Ford Europe comes in second at $24 billion reported in fiscal 4Q 2021, contributing around 19% 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’s North America and Europe automotive revenues have declined, the downtrend has reversed in 2021 and automotive revenue was seen moving higher post-2020.

As of fiscal 2021 Q4, Ford’s automotive revenue in North America reached $88 billion, a record high since 2020.

Similarly, Ford’s automotive revenue from Europe reached $24.5 billion as of fiscal 2021 Q4, representing a year-on-year growth rate of 8%.

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)

* Revenue by region in the chart is presented on a TTM basis.
* 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 in the post-COVID age and reached as much as $9 billion in fiscal 4Q 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 $2.5 billion as of fiscal 2021 4Q 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.

Similarly, Ford South America’s automotive revenue also has been on a decline, reaching only $2.4 billion USD as of fiscal 2021 Q4.

In short, Ford has done poorly in China and South America in terms of automotive revenue growth.

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 reported a 6% and 5% growth rate in automotive and total revenue, respectively, in fiscal 4Q 2021.

However, Ford Credit’s revenue YoY growth rate was still in the red at -13% in fiscal 4Q 2021, a record year-on-year decline in 2021.

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 reported very poor revenue growth across most of the regions as shown in the chart.

As seen, Ford North America was the only region with a positive growth rate, notably at 17.5% in 4Q 2021.

Therefore, the rest of the regions had negative growth rates.

For example, Ford South America had -8% while Ford Europe was -19% as of fiscal 2021 Q4.

Ford China did poorly in 4Q 2021 when the respective automotive revenue dropped 27%, the worst result among all of the regions.

Conclusion

In summary, Ford’s fiscal 2021 total revenue was slightly better than that of fiscal 2020, up 7% on a year-over-year basis.

Going into fiscal 2022, Ford is projected to grow the total revenue to as much as $160 billion, a rise of nearly 18% from 2021.

Similarly, Ford’s automotive revenue also is projected to grow to $148 billion in fiscal 2022, a rise of 17% from 2021.

All in all, revenue decline seems to have reversed in fiscal 2021 and the forecast for fiscal 2022 is expected to exceed the pre-pandemic level.

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

Whatever it is, 2021 represents one of Ford’s best years after the pandemic.

Still, Ford is a heavily-indebted company at more than $100 billion debt level.

Nevertheless, Ford may survive through the crisis or even return stronger in 2022 given the launch of several models, including a few all-electric vehicles.

Ford’s recent electric vehicles bet may just be the perfect catalyst for the company to grow.

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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