Ford (F) reported better-than-expected first-quarter results after Wednesday. Its changing product strategy was centered around a focus on gasoline and hybrid products. Ford also raised some metrics, but did not raise its full-year profit forecast.
For the quarter, Ford reported sales of $42.8 billion, beating expectations of $40.04 billion and increasing 3% from a year earlier. Ford reported adjusted earnings per share of $0.49, above expectations of $0.42, and adjusted EBIT (earnings before interest and taxes) of $2.8 billion, compared to the expected $2.54 billion. Ford's results were better than in the fourth quarter, when the effects of the United Auto Workers (UAW) strike lingered.
Ford said full-year adjusted EBIT is in the range of $10 billion to $12 billion, but capex guidance has been tightened to $8 billion to $9 billion and adjusted free cash flow target is at $65 billion. The amount was raised to between $7.5 billion and $7.5 billion. Previously, Ford had expected 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.
Ford shares rose 3% in after-hours trading after the results were announced. The results came after GM reported strong first-quarter results and boosted its full-year profit outlook.
Ford CEO Jim Farley said on an earnings call that the company's updated guidance incorporates a slowdown in sales of the new Ford F-150. Ford also announced a $0.15 dividend for the quarter.
Last year, Ford split its business into three divisions as part of its Ford+ initiative. Ford Blue is for conventional gasoline vehicles. Ford model e, for the EV division. Ford Pro in the commercial and super heavy truck business; The breakdown for the first quarter is as follows:
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Ford Blue: $21.8 billion in revenue, $905 million in EBIT
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Model e: $100 million in revenue, $1.32 billion in EBIT loss
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Ford Pro: $18 billion in sales, $3.01 billion in EBIT
“We have to make great progress with the Model E, but it's a big drag.” [on profits]'' Farley said during the earnings call.[The EV business] That is the main drag on the company and the industry. ”
In the first quarter, Ford pushed EV spending and production to the back burner to further develop gasoline and hybrid vehicles. Earlier this month, Ford announced that it would delay EV production at its massive Blue Oval City EV campus in Tennessee from its original 2025 start date to 2026. Ford also said it is “postponing” future EV launches at its Oakville, Ontario, plant, where it plans to build the next generation of three-row electric vehicles and possibly a full-size SUV. The company aims to launch these vehicles in 2027, pushing back its original 2025 schedule.
Ford also announced earlier in the quarter that it would add a third shift to ramp up production of the Bronco SUV and Ranger midsize pickup truck to meet customer demand. Meanwhile, Ford is focusing on hybrid products such as the Maverick pickup and the new F-150 with a hybrid powertrain.
This was reflected in Ford's first quarter U.S. vehicle deliveries, which rose 6.8% to 508,083 vehicles due to strong sales of hybrid and other electrified products. Sales of Ford's Maverick hybrid pickup truck increased 77% in the first quarter, its best quarter ever. Thanks to the Maverick, overall hybrid sales rose 42% to 38,421 units, with Ford claiming another best quarter for hybrids this year and that momentum continuing.
“Our hybrid production capacity is in trucks, and we don't see a lot of competition for this business,” Farley said on a conference call. Although Toyota and Honda are the top hybrid sellers in the U.S., Farley pointed out that their products include more than just trucks.
Even Ford's EV products (Mustang Mach-E, Ford Lightning EV, E-Transit commercial van) bucked recent trends in demand softening. Across Ford's EV portfolio, sales rose 82% to 20,223 EVs in the first quarter, with Mustang Mach-E sales up 77.3% to 9,589 units and Lightning pickup sales up 80.4% to 7,743 units. Extended. Sales numbers here were strong, but Ford relied on deep discounts, low financing rates and lease agreements to move inventory.
“We have seen [EV] Ford CFO John Lawler said on a conference call that Ford's EV prices fell 17% in the first quarter as the company struggles to recoup losses in its Model E division.
However, the negative for Ford was the sales of its flagship product, the F-150. The F-Series (which includes the F-150, heavy-duty F-250 and F-350 products) remained America's best-selling truck, but sales for the quarter fell 10.2% to 152,943 It was a stand. Ford has been slow to see widespread adoption of its new F-150, which went on sale in March.
Correction: An earlier version of this article misstated Ford's adjusted earnings per share numbers. We apologize for the error.
Pras Subramanian is a reporter for Yahoo Finance.you can follow him twitter And even more Instagram.
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