Ford Motor Co. posted profits of $1.8 billion in the first quarter of 2023, up from the $3.1 billion loss it reported a year ago.
Revenue rose 20% year-over-year to $41.5 billion on a 9% increase in vehicle shipments over the same period last year. And adjusted operating profits were up 45% to $3.4 billion. The results beat analysts’ expectations.
Executives said that the quarter’s profitability was bolstered by a “favorable mix of products, higher net pricing and increased volume.”
In a reflection of a restructuring of the company, Ford for the first time Tuesday reported financial results for three separate business units: Ford Blue, dedicated to gas and hybrid vehicles; Ford Model e, which is focused on electric vehicles, and Ford Pro, which handles commercial products and services.
The EV business posted a $722 million operating loss on revenue of $700 million for the quarter — which should come as no surprise to investors after Ford previously disclosed that it plans to lose $3 billion on EVs this year. It expects EV losses to reverse in the coming years as volumes grow.
Results also were held back by production interruptions for the Mustang Mach-E and F-150 Lightning — electric derivatives of iconic favorites — in Q1 that constrained shipments and revenue.
Operating profits for Ford Pro nearly tripled from a year ago to $1.4 billion on revenue of $13.2 billion, while Ford Blue’s operating profits nearly doubled to $2.6 billion on revenue of $25.1 billion. Both segments were profitable in every geographic region where they operate, and had earnings margins of more than 10%.
“We’re bringing Ford+ to life by zeroing in on what distinct customers need and value the most,” CEO Jim Farley said in a statement, referring to the company’s growth plan. “Ford Pro is leading the way on profitable growth, our big investments in iconic Ford Blue vehicles and derivatives are winning with customers, and Ford Model e’s different approach to EVs is significantly reducing costs on our first high-volume products while rapidly developing breakthrough next-generation vehicles from the ground up.”
The company ended the quarter with nearly $29 billion in cash and more than $46 billion in liquidity.
The Dearborn automaker reaffirmed its full-year guidance of adjusted operating profits of between $9 billion and $11 billion, and adjusted free cash flow of about $6 billion. It also reaffirmed its segment-level expectations of about $7 billion in operating profits for Ford Blue; a full-year loss of $3 billion for Ford Model e; and operating profits of nearly $6 billion for Ford Pro.
Crosstown rival General Motors Co. last week beat Wall Street expectations with first-quarter profits of $2.4 billion on revenue of $40 billion. The Detroit automaker raised its guidance for the year to adjusted operating profits of between $11 billion and $13 billion.
Stellantis NV releases first-quarter shipments and revenues Wednesday.
jgrzelewski@detroitnews.com