Ford Raises Outlook as Quarterly Profits Climb 9%

Ford Motor Co. reports its net income in January-March totaled $1.7 billion compared with $1.6 billion in the same period last year.

First-quarter revenue rose 7% to $42 billion. Adjusted earnings before interest and taxes tumbled 13% to $2.2 billion, dragged down by higher commodity costs and unfavorable exchange rates.

Ford’s automotive operations report their first-quarter revenue expanded 7% to $39 billion. Worldwide wholesales dipped 2% to 1.66 million vehicles. Ford’s share of the global auto market fell to 6.5% from 7.1% in the same period last year.

The company has raised its outlook, based on delivering an additional $11.5 billion in cost cuts and efficiency gains between now and 2020. The new reductions are in addition to $14 billion in savings previously targeted and will come from all parts of the company, according to CEO Jim Hackett.

Ford now aims to achieve an 8% profit margin by 2020, two years earlier than previously forecast. Chief Financial Officer Bob Shanks tells reporters “everything will be on the table” to help the company achieve that goal.

Making more efficient capital investments will enable the company to reduce its capital spending 15% to $29 billion over the next two years. Ford says it will update investors on Sept. 26 about its progress.