Ford Motor Company announced quarterly results in line with market estimates for the first quarter of the year, although the reduction in the value of its stake in the electric vehicle company Rivian Automotive and the reduction of its production hit its profitability.
The auto industry reported a loss of $ 3.1 billion, or 78 cents a share, for the first quarter, compared with earnings of $ 3.3 billion, or 81 cents a share, in the same period last year.
The main reason was the reduction of the value of the 12% stake it holds in the electric vehicle company Rivian Automotive. Rivian shares have lost 70% of their value since the beginning of 2022, with the result that Ford’s share fell by 52%, to $ 5.1 billion from $ 10.6 billion previously.
Ford Adjusted Earnings was 38 cents a share.
The automotive industry’s revenue fell to $ 34.5 billion from $ 36.2 billion in the first quarter of last year.
Analysts in a FactSet poll expected adjusted earnings per share of 37 cents, with revenues of $ 34.5 billion.
Ford said it still expects adjusted operating profit of $ 11.5 billion to $ 12.5 billion in operating profit, despite the war in Ukraine, supply chain turmoil, inflation and rising US interest rates that have hit the industry. .
The company also said it expects strong prices to remain in place, improved semiconductor availability in the second half of the year and a 10% increase in wholesale volume to 15%.
Source: Capital
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