NEW YORK: Ford reported solid quarterly profits Tuesday behind higher vehicle volumes and improved operating performance, but said vehicle pricing was becoming less favourable compared with last year.
Thanks to strong results in conventional auto sales that offset losses in electric vehicles, Ford reported better-than-expected first-quarter results.
Profits came in at US$1.8 billion, compared with a US$3.1 billion loss in the year-ago period connected to an accounting loss.
Revenues jumped 20.2% to US$41.5 billion.
But Ford maintained its full-year targets, pressuring shares, as executives signalled an evolution from a period of exceptionally lean vehicle inventories of recent times that lifted sticker prices.
While pricing remained exceptionally strong in Ford’s Pro division aimed at commercial enterprises, chief financial officer John Lawler said pricing was “about flat” in Ford Blue, which comprises best-selling trucks and iconic vehicles such as the Mustang.
“We’re starting to see in the Blue segment a little bit more of a normalisation of volume and demand,” Lawler said on a briefing with reporters. “We expect that to continue to be more competitive as we go through the year.”
Lawler also described the macroeconomic environment as “opaque at best,” given the drag from inflation and tightening credit conditions.
Tuesday’s results were the first under Ford’s new reporting structure that includes separate financial details for EVs.
The division, which Ford has likened to a startup, experienced an operating loss of US$722 million compared, offset by profits in the other two Ford businesses.
Shares of Ford dropped 2.4% to US$11.52 in after-hours trading.