(New York) The American automobile manufacturer Ford published mixed first quarter results on Wednesday, exceeding analysts’ expectations with its earnings per share which is the variable they like the most.
“I think it’s a really solid quarter,” commented John Lawler, group financial director, to journalists, highlighting the good performance of Ford Blue (combustion and hybrid vehicles) and Ford Pro (utility vehicles).
On the other hand, Ford Model e (electric vehicles) recorded a loss in the quarter “due to a drop in prices in the sector”, he explained.
Between January and March, the Dearborn (Michigan) group earned a turnover of $42.8 billion (+3% year-on-year) despite a “slight” decline in the number of vehicles shipped.
It has progressed “over the past three years and we plan to do the same in fiscal 2024,” he said.
Quarterly net profit fell 0.4% to $1.3 billion, below the FactSet analyst consensus of $1.77 billion.
But, reported per share and excluding exceptional items, it did better with 49 cents, compared to 43 cents which was anticipated.
In electronic trading after the New York Stock Exchange closed, Ford shares rose 2.32%.
“With car inventories at much higher levels and a long-term high interest rate scenario looming, we believe that new vehicle prices will remain under pressure and that promotions and other discounts will increase.” , commented CFRA analysts, in a note, welcoming “solid results”.
High fork
For 2024, the group maintained its pre-tax profit forecast excluding exceptionals of between $10 and $12 billion, specifying that it expected to arrive “towards the top of the range”.
On the other hand, he was a little more ambitious regarding the flow of available liquidity on a comparable basis: he is now counting on 6.5 to 7.5 billion dollars, compared to 6 to 7 billion previously targeted.
The group said it was still confident in its $2 billion cost reduction plan (raw materials, transport, production), which should be reflected in the accounts in the second half, executives said during an audio conference with analysts.
The Ford Pro business generated $18 billion in revenue, jumping 36% thanks to higher production of the powerful Super Duty pickups.
But Ford Blue experienced a less rosy quarter, with a decline in its turnover (-13.14% to 21.8 billion dollars) and a drop in sales to dealers, due to the rise of the production of the 2024 model of the flagship F-150 pickup.
Sales of hybrid vehicles increased by 36%, in line with the objective of growth of 40% for the whole year.
The turnover of the Ford Model e branch only reached 100 million dollars in the quarter, compared to 700 million a year earlier. It had climbed to 1.8 billion in the second and third quarters, before falling slightly to 1.6 billion in the fourth.
It posted a pre-tax loss of $1.3 billion for the quarter.