Ford posts $1.76B 1Q profit largely on gas-powered vehicles
This is a huge company that is making a lot of money.
FILE – A Ford sign at a Springfield, Pa. dealership, Tuesday, April 26 2022. Ford will report their earnings on May 2, 2023.
Matt Rourke/AP
DETROIT (AP). Ford Motor Co. earned $1.76 billion in the last quarter. This is a significant improvement from the $3.1 billion loss it had for the same time period a previous year.
Ford earned 44 cents per share, excluding one-time items. FactSet estimates that Ford's earnings per share were 42 cents.
Analysts expected revenue to be $39.25 billion but it was up by 20%.
Ford has reaffirmed the earlier guidance of its pre-tax profit for the full fiscal year, which ranges from $9 billion to $10 billion.
Ford made $2.62 Billion on internal combustion engines, but lost $722 M$ on electric vehicles. Ford's commercial vehicles unit contributed $1.37 billion in pretax profit.
Sales in the U.S. were responsible for a large part of the company's profits, as it is its largest market. Ford sold slightly less than 472,000 cars from January to March, an increase of 9.9% over the previous year.
Ford continued to sell its vehicles at high prices during the third quarter, mainly due to large SUVs and trucks with a lot of cargo. Edmunds reports that Ford's average sales price is $56,534.
Ford's first-quarter loss was primarily due to the drop in stock value of Rivian.
Ford reduced prices for its Mustang Mach E electric vehicle on Tuesday. Tesla, which is the main competitor to the Mach E, raised prices on the Model Y slightly.
Ford said that it will reopen the order bank for the Mach E on Wednesday after upgrading the factory in Mexico so as to increase production.