Ford Motor Co announced a smaller profit for the first quarter of the year than what analysts were expecting, having sold fewer cars in North America, and worked to increase the production for the F-150 pick-up truck model and also having lost money in South America.
The number two automaker in the U.S. kept its forecast for the entire year keeping its pretax profit between $8.5 billion and $9.5 billion.
Even if the business situation in South America is deteriorating, the car brand did raise its forecast for the operating margin in North America from 8-9%, to 8.5- 9.5% due to the F-150 launch doing better than expected.
Ford’s CFO, Bob Shanks, stated on the topic that “The external environment in South America has deteriorated compared to where we were just a few months ago.”
The carmaker did not register substantial losses as the $1.16 billion loss in South America last year, but for the first-quarter of the year the net income went down 7% to $924 million from $ 989 million in 2014. The company’s revenue also fell 5.6% to $33.9 billion.
Shanks added that Ford’s North American profit would have increased more than $1 billion from its reported $1.34 operating profit if the sales for the relaunched cars were the same as in 2014.
According to Shanks, Ford managed to ship off around 60.000 fewer F-150 pickup trucks in this year’s first quarter than a year ago and more than 50% fewer Edge car models than in 2014. He is hopeful that the North American share will rise throughout this year, even if it fell to this point 0.6 down to 6.7%.
By Gabriela Florea