Ford posts stellar first quarter, boosted by fleet and legacy truck divisions

DETROIT — Ford Motor on Tuesday reported first-quarter results that significantly topped Wall Street’s estimates, as the automaker’s fleet and legacy operations outweighed growing losses in electric vehicles.

Despite the significant beat, Ford maintained its previously announced 2023 guidance, and the stock ticked lower in extended trading.

Ford CFO John Lawler said the quarter was a “peek at what’s possible to generate value and growth.” His comments come months after CEO Jim Farley said the company failed to capitalize on $2 billion in additional profits last year due to “execution issues.”

Here’s how Ford did during the quarter, compared with what Wall Street expected based on average estimates compiled by Refinitiv:

• Earnings per share: 63 cents, adjusted, vs. 41 cents expected, per Refinitiv
• Automotive revenue: $39.09 billion vs. $36.08 billion expected, per Refinitiv

Ford reiterated it expects full-year adjusted earnings between $9 billion and $11 billion and roughly $6 billion in adjusted free cash flow. Ford said it plans to have capital expenditures of between $8 billion and $9 billion in 2023.

The company also reconfirmed it expects to lose about $3 billion from its EV operations, known as Model e, in 2023. The operations lost $722 million in the first quarter, Ford said.

Those losses were washed out, however, by the company’s traditional car business, known as Ford Blue, which earned $2.6 billion, and the automaker’s Ford Pro fleet operations, which reported $1.4 billion in earnings. The automaker said both business segments were profitable in every region where they operate.

This quarter, Ford is reporting its financial results by business unit, instead of by region, for the first time. The Detroit automaker earlier this year released revised results for 2021 and 2022 according to the new structure.

Wall Street is closely monitoring the automaker’s EV unit, known as Model e, in addition to any comments on EV pricing following Tesla price changes. Ford on Tuesday said it would again cut the starting prices of its electric Mustang Mach-E by thousands of dollars, as it increases production and reopens order banks for the crossover.

For the first quarter, Ford reported net income of $1.8 billion, or 44 cents per share, significant improvement from a net loss of $3.1 billion, or 78 cents per share, during the same period a year earlier.

Total revenue, which includes the impact of Ford Credit, grew 20% year over year, the company said.

There was additional pressure on Ford’s first-quarter results after crosstown rival General Motors last week raised key guidance for 2023 and reported results that topped Wall Street’s top- and bottom-line forecasts.

GM raised its adjusted earnings expectations to a range of $11 billion to $13 billion, or $6.35 to $7.35 a share and expectations for adjusted automotive free cash flow to between $5.5 billion and $7.5 billion.

— CNBC’s Michael Bloom contributed to this report.

This is a developing story. Please check back for additional details.