Ford sees first-quarter profit dragged lower by Rivian stake, but maintains 2022 earnings guidance

Ford sees first-quarter profit dragged lower by Rivian stake, but maintains 2022 earnings guidance


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.



Source

NFL will fine more than 100 players for reselling Super Bowl tickets at a profit
Business

NFL will fine more than 100 players for reselling Super Bowl tickets at a profit

A detail shot of the Lombardi Trophy next to Kansas City Chiefs and Philadelphia Eagles helmets prior to a news conference on February 03, 2025 in New Orleans, Louisiana ahead of the NFL Super Bowl LIX football game between the Philadelphia Eagles and the Kansas City Chiefs. Kevin Sabitus | Getty Images Sport | Getty […]

Read More
Auction sales fall 6% in the first half, raising fears of an art market shift
Business

Auction sales fall 6% in the first half, raising fears of an art market shift

Ups and Downs by KAWS, estimated£30000-£50000, on display during a preview at the Phillips showroom in central London, ahead of their forthcoming Evening and Day Editions auction. Picture date: Friday January 17, 2025. (Photo by Ian West/PA Images via Getty Images) Ian West – Pa Images | Pa Images | Getty Images A version of […]

Read More
FCC approves  billion Paramount-Skydance merger
Business

FCC approves $8 billion Paramount-Skydance merger

The Paramount Global headquarters in New York, US, on Tuesday, Aug. 27, 2024.  Yuki Iwamura | Bloomberg | Getty Images The Federal Communications Commission cleared the way Thursday for an $8 billion merger between Paramount and Skydance Media. The deal, which was announced more than a year ago, includes the CBS broadcast television network, Paramount […]

Read More