Ford Motor Corp. reported first quarter earnings higher than anticipated by analysts. According to the car maker, strong U.S. sales was a major factor in the quarter's earnings performance.
The company’s adjusted earnings came in at 44 cents per share, beating analysts’ estimates of 27 cents (based on Refinitiv poll). Its revenue from the automotive segment revenue was $37.24 billion for the quarter, compared to analysts’ expectation of $37.08 billion.
The higher-than-expected earnings were, however, accompanied by weakening demand from markets like China which was a drag on Ford’s total revenue. Total revenues dipped -3.9% to $40.34 billion. The demand decline in China, Europe and other nations led to Ford losing almost half a percent of its global market share over the first three months of the year.
Nevertheless, U.S. sales remained steady at $25.4 billion, on the back of strong domestic demand for trucks and SUVs – contributing to around $2.2 billion in its overall $2.4 billion of operating earnings for the quarter. Ford CFO Bob Shanks emphasized that solid demand for the F-Series was a factor behind earnings boost from the North America market.
Shanks indicated that the first quarter was likely to be the strongest period of the year for Ford.
Looking ahead, Ford seems to be upping the ante on innovation. The company said earlier this week that it would invest $500 million in sustainable energy automaker Rivian, and it also indicated that the electric F-150 pick-up truck is in the middle of its development cycle.