Ford announced its financial results for the first quarter, revealing that it performed better than expected. The company is focusing on its product lineup and offering more gas and hybrid vehicles. While it improved some of its financial guidance, it didn’t change its full-year profit outlook.
In the first quarter, Ford made $42.8 billion in revenue, which was higher than the estimated $40.04 billion. Its adjusted earnings per share were $0.63, surpassing the forecast of $0.42. The company’s adjusted EBIT (earnings before interest and taxes) reached $2.8 billion, exceeding the expected $2.54 billion. Compared to last year, Ford’s revenue increased by 3%. This improvement is notable, especially after facing challenges from the United Auto Workers (UAW) strike in the fourth quarter of the previous year.
Ford mentioned that its full-year adjusted EBIT is expected to be “tracking to the high end of $10 billion to $12 billion.” It also raised its adjusted free cash flow target to $6.5 billion to $7.5 billion. The company tightened its CAPEX guidance to $8 billion to $9 billion. Previously, Ford had projected adjusted EBIT of $10 billion to $12 billion, adjusted free cash flow of $6 billion to $7 billion, and capital expenditures of $8 billion to $9.5 billion.
The company’s shares rose by over 3% in after-hours trading following the announcement of its positive results. Ford’s performance comes after General Motors (GM) reported strong first-quarter results and increased its yearly profit outlook.
Ford’s President and CEO, Jim Farley, emphasized the company’s commitment to providing customers with quality vehicles and choices in powertrains. Last year, Ford restructured its business into three units: Ford Blue for traditional gas-powered autos, Ford Model E for electric vehicles (EVs), and Ford Pro for commercial and super-duty trucks.
During the first quarter, Ford focused more on gas and hybrid vehicles, delaying EV production at some facilities. It also announced plans to add a third shift to increase production of its Bronco SUV and midsize Ranger pickup. The company’s hybrid offerings, like the Maverick pickup and F-150 with a hybrid powertrain, saw strong sales.
Despite challenges, Ford’s EV portfolio performed well, with a significant increase in sales of vehicles like the Mustang Mach-E and Ford Lightning EV. However, sales of its flagship F-150 experienced a decline due to the slow ramp-up of the all-new model.
Ford’s first-quarter results indicate positive momentum, especially in its gas, hybrid, and EV offerings, contributing to its financial success.
