Ford F-150 Lightning trucks manufactured at the Rouge Electric Vehicle Center in Dearborn Michigan.
Courtesy: Ford Motor Co.
DETROIT – Ford Motor posted first-quarter results Wednesday that were in line with Wall Street’s expectations, though its earnings were dragged down by a stake in electric vehicle maker Rivian Automotive and lower profits on reduced production.
Ford’s adjusted results excluded a loss of $5.4 billion on the company’s 12% stake in Rivian. Its net loss, including the stake in Rivian, totaled $3.1 billion, the company said.
Rivian stock has shed about 70% of its value so far in 2022. Those losses brought the value of Ford’s stake in Rivian down from $10.6 billion to $5.1 billion during the first quarter, a 52% decline.
Despite the challenges, Ford reaffirmed its pretax adjusted earnings forecast of between $11.5 billion and $12.5 billion for the year. Several analysts expected Ford to lower its guidance due to inflation, rising costs and supply chain disruptions.
Here’s how Ford did compared with what Wall Street expected:
- Adjusted EPS: 38 cents vs. 37 cents, according to Refinitiv consensus estimates
- Automotive revenue: $32.1 billion vs. $31.13 billion, according to Refinitiv consensus estimates
Ford’s results come a day after its crosstown rival, General Motors, easily beat Wall Street’s earnings expectations. GM also surprised analysts by maintaining its adjusted pretax profit guidance of $13 billion to $15 billion for 2022, despite a litany of supply chain issues and increased costs.
Ford’s stock has been under pressure this year, down about 30% this year. It was the top growth stock among automakers in 2021.
Aside from the earnings and guidance, investors will be watching for any updates or progress on CEO Jim Farley’s Ford+ turnaround plan and for any new information on the company’s electric vehicle plans. Ford celebrated the start to production of its electric F-150 Lightning pickup earlier this week.
This is breaking news. Please check back for updates.
