Ford Motor Co. reported a 24% decrease in net income for the first quarter of the year, with earnings coming in at $1.33 billion compared to $1.76 billion in the same period last year. Despite this decline, the company managed to beat analyst estimates by earning 49 cents per share, excluding one-time items.
Revenue for the quarter saw a 3.2% increase to $42.78 billion, although this fell short of Wall Street expectations. The Ford Blue combustion engine unit experienced a decrease in revenue and sales, while the Ford Pro commercial vehicle unit posted pretax earnings of just over $3 billion, marking a significant growth from last year.
On the other hand, the Model e electric vehicle business reported a loss of $1.3 billion in Q1. However, Ford has pledged to cut costs and enhance profits in the electric vehicle sector over the next two to three years.
Despite the challenging financial results, Ford has maintained its full-year pretax earnings forecast of $10 billion to $12 billion. The company also anticipates a 2% to 3% decrease in U.S. auto prices for the year.
Following the earnings report, shares of Ford rose by 3% in trading after Wednesday’s closing bell. With a focus on improving profitability in the electric vehicle segment and navigating the changing landscape of the auto industry, Ford is working to position itself for continued success in the future.
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