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 $0.63, beating expectations of $0.42 and adjusted EBIT (earnings before interest and taxes) of $2.8 billion, compared to expectations of $2.54 billion. Ford's results were better than in the fourth quarter as the impact of the United Auto Workers (UAW) strike lingers.
Ford said its full-year adjusted EBIT is “on the high end of $10 billion to $12 billion,” but its adjusted FCF target has been raised to $6.5 billion to $7.5 billion and the outlook for capital spending is 8.0 billion. The limit has been tightened to between $9 billion and $9 billion. Previously, the company expected adjusted EBIT to be between $10 billion and $12 billion, adjusted free cash flow between $6 billion and $7 billion, and capital expenditures between $8 billion and $9.5 billion.
Ford shares rose in after-hours trading, rising more than 3%. Ford's results come after GM reported strong first-quarter results and boosted its full-year profit outlook.
“Customers want cars they're passionate about, driving options, constantly improving quality and great value,” Ford President and CEO Jim Farley said in a statement. “With Ford+, we are delivering all of this in a way no one else is, creating a company that will lead for the long term.”
Last year, Ford split its operations into three divisions. Ford Blue is for traditional 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
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.
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.
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.
Pras Subramanian is a reporter for Yahoo Finance.you can follow him twitter And even more Instagram.
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