Ford Net Drops 35%, But Operating Profit Rises 12%

Ford Motor Co. says the costs of restructuring in Europe and exiting the heavy truck market in South America caused net earnings in the first quarter to skid to $1.1 billion from $1.7 billion last year.

But the company’s operating profit climbed 12% to $2.4 billion, thanks to those streamlining efforts. Ford’s adjusted earnings per share advanced one cent to 44 cents, well above analysts’ forecasts of about 27 cents. Ford shares, which plunged 37% in 2018, have gained 23% so far this year.

Ford notes that its quarterly EBIT in North America rose 16% to $2.2 billion. The company’s EBIT overseas narrowed to $196 million in the first quarter from $632 million in the fourth quarter of 2018.

Net revenue declined 4% to $40.3 billion in the first quarter, as global vehicle wholesales fell 14% to 1.43 million cars and trucks. Volumes shrank in all major markets, led by North America (-5% to 753,000 units), Europe (-13% to 391,000) and China (-48% to 115,000).

A richer truck-heavy sales mix helped power a 2% gain to $25 billion in factory sales to dealers in North America. Year-on-year revenue declined in other major markets.

Ford reports that its losses in its mobility-related initiatives widened to $288 million in the first quarter from $186 million in the same period in 2018. One bright spot: Ford Motor Credit’s quarterly pretax earnings surged 25% to $801 million.