Ford Q1 profits fall 28% as Ford Blue hit from F-150 ramp-up

Ford Motor Co. said Wednesday it made $1.3 billion in net income in the first quarter of 2024, a 28% decrease year-over-year, as earnings from Ford's gas-engine and hybrid business tumbled from the ramp-up of the refreshed 2024 F-150 pickup truck.

The profit that represented 33 cent earnings per diluted share came on $42.8 billion in revenue, which was up 3.1%. Those are mixed results compared to Wall Street expectations. Analysts, according to Yahoo Finance, on average were projecting the Dearborn, Michigan, automaker to record $37.63 billion in revenue and 40 cents for earnings per share.

The Blue Oval's shares in post-market trading were up 2% to $13.31 per share.

“Customers want vehicles that they’re passionate about, choices in how they’re powered, quality that’s constantly getting better and great value,“ CEO Jim Farley said in a statement. “With Ford+, we’re increasingly giving them all those things in ways that others don’t and creating a company that will lead for the long haul."

For the January-through-March quarter, Ford posted adjusted operating earnings of $2.8 billion, down 18% year-over-year.

Operating income of Ford Blue, the company's internal combustion engine and hybrid vehicle business, declined 65% to $905 million with a 4.2% operating margin.

Ford's U.S. sales rose 6.8% in the first quarter, though F-Series trucks were down 10%. The automaker, though, now has a full lineup of the refreshed F-150 full-size trucks, including the Lightning all-electric model, and the new midsize Ranger being shipped.

Meanwhile, Ford Pro, the commercial vehicle business, was the shining star of the report. It posted more than $3 billion in operating income, up 120% from last year, and a 16.7% operating margin. Super Duty sales drove the increase, according to the automaker. Software services also represented 13% of the earnings, nearing the goal of 20%.

The loss posted by Ford Model e, the business unit dedicated to electric vehicles, was $1.32 billion compared to $722 million a year ago. Lightning shipments were held up starting in early February over an undisclosed quality issue. Those shipments resumed last week, though the company cut the third shift of production at the Rouge Electric Vehicle Center in Dearborn at the start of April.

Ford maintained its guidance for full-year adjusted operating income of $10 billion to $12 billion. The company increased adjusted free cash flow upward: $6.5 billion to $7.5 billion from the initial outlook of $6 billion to $7 billion. Additionally, Ford anticipates capital expenditures for the year of $8 billion to $9 billion, narrowing the $8 billion-to-$9.5 billion original estimation.

The company also remains on track to cut $2 billion in areas like materials, freight and manufacturing.

Annual adjusted operating earnings outlook remains $8 billion to $9 billion for Ford Pro and $7 billion to$7.5 billion for Ford Blue. The automaker also expects a $5 billion to $5.5 billion loss for Ford Model e. It anticipates earnings before taxes of about $1.5 billion for Ford Credit.

Ford will pay a 15-cent regular on June 3 to shareholders of record at close on May 8.

Beating expectations on Tuesday, crosstown rival General Motors Co. in the first quarter made $3 billion in net income on revenue of $43 billion, prompting it to increase its guidance for the year. Stellantis NV will report first quarter revenue and shipments on April 30.