Ford Exceeds Expectations in First Quarter Results
Ford Motor Company reported first-quarter results that surpassed expectations, with a revenue of $42.8 billion and adjusted earnings per share of $0.49. The company’s adjusted EBIT came in at $2.8 billion, higher than estimates of $2.54 billion.
CEO Jim Farley announced that Ford raised its adjusted free cash flow target to $6.5 billion to $7.5 billion. However, the company did not adjust its full-year profit outlook. Farley attributed the guidance update to a slower ramp-up of the all-new Ford F-150.
Ford recently divided its business into three units: Ford Blue, Model e, and Ford Pro, each with varying revenue and EBIT numbers. The company focused on gas and hybrid offerings in Q1, delaying the production of EVs and adding a new shift to boost production of the Bronco SUV and Ranger pickup.
Ford saw a 6.8% increase in US deliveries in the first quarter, driven by strong sales of electrified products such as hybrids. The company’s EV portfolio also performed well, with sales of the Mustang Mach-E and Lightning EV increasing significantly.
Despite the success of electrified products, Ford experienced a 10.2% decline in flagship F-150 sales in the quarter. CFO John Lawler noted that EV prices dropped significantly in the first quarter, impacting the profitability of the Model e unit.
Overall, Ford’s first-quarter results exceeded expectations, highlighting the company’s strength in the evolving automotive market.
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