Ford’s First-Quarter Sales, Profits Slip

Ford Motor Co.'s net profit in January-March 2015 fell 7% to $924 million as revenue dropped 6% to $33.9 billion and wholesale deliveries slipped 1% to 1.57 million units.

Ford's pretax earnings, excluding special items, climbed 2% to $1.4 billion in the first quarter. The company's share of the global market rose to 7.0% from 6.8% as slippage in North America was offset by gains overseas.

Ford says results were negatively impacted by a higher tax rate and the strong dollar. But the company reiterates that it expects improved full-year revenue, margins and cash flow. It predicts pretax profits totaling between $8.5 billion and $9.5 billion compared with $6.4 billion in 2014.

In North America, Ford sales declined 5% to 678,000 units in the first quarter. Revenue declined 2% and $20.0 billion, and pretax profits fell 11% to $1.3 billion.

In South America, pretax losses shrank to $189 million from $510 million in the first quarter of 2014. Wholesale delivers slipped only 3% to 101,000 units, but revenue plunged 21% to $1.5 billion.

First-quarter deliveries in Europe rose 2% to 376,000 vehicles, but revenue dropped 12% to $6.9 billion. Ford narrowed its pretax losses in the region to $185 million from $194 million in the same period last year.

In Asia Pacific, Ford's wholesale volume grew 5% to 366,000 vehicles in January-March. Revenue fell 12% to $2.3 billion, and pretax earnings plunged 65% to $103 million.