The second largest US automaker, Ford Motor, has recently reported its first quarter financial results, which fell slightly below analyst expectations, but reaffirmed its full year outlook.
The automaker didn’t manage to increase deliveries during the first three months of the year from the similar period last year, as it worked to lift production of its new generation F-150 pickup truck and also lost money in the South American region. The full year profit prediction has been confirmed to remain in the $8.5 billion to $9.5 billion range. The company did highlight a positive aspect – its outlook for the North American unit’s earnings margin has been increased from the previous goal of 8 to 9 percent to 8.5 to 9.5 percent. The goal was positively impacted by the better than expected launch of the new aluminum intensive F-150 pickup truck, but the business predictions for South America are becoming increasingly dire.
The automaker’s total net income for the first three months of the year slid 7 percent to 4924 million – 23 cents a share, from 24 cents a share during the same period last year. Revenue also dropped by 5.6 percent to $33.9 billion – with 2 cents of the total 3 cents a share profit drop being attributable to a new tax rate, higher than earlier previewed by analysts. Its North American profitability and sales were impacted by the turnover of two crucial models – the F-150 truck and Edge sport utility vehicle, which had 40 percent and 50 percent, respectively, lower sales during the quarter.