Ford Motor Co. (F) has reported a better-than-expected first quarter profit due to strong sales of its commercial vehicles.
The Detroit automaker announced earnings per share (EPS) of $0.49 U.S. compared to $0.42 U.S. that was expected by analysts.
The company’s Q1 revenue totaled $39.89 billion U.S. versus $40.10 billion U.S. that was forecast on Wall Street. Sales were up 3% from a year earlier.
Ford’s traditional business, known as Ford Blue, reported earnings of $905 million U.S., down 66% from a year ago.
However, Ford’s commercial business earned $3.01 billion U.S. in Q1, up 120% year-over-year. Ford’s electric vehicle unit posted a $1.32 billion U.S. loss for the January through March period.
The decline in Ford Blue was related to the launch of the company’s new F-150 pick-up tuck, which faced multiple delays due to undisclosed quality issues.
Management said that strong commercial vehicle sales in the quarter helped to offset losses from the traditional and electric vehicle business units.
Looking ahead, Ford maintained its 2024 earnings guidance, saying it expects a profit of $10 billion U.S. to $12 billion U.S. for all of this year.
The automaker also said that it expects to generate free cash flow of $6.50 billion U.S. to $7.50 billion U.S., up from a previous outlook of $6 billion U.S. to $7 billion U.S.
Ford reiterated that it expects its electric vehicle business to lose $5 billion U.S. to $5.50 billion U.S. in 2024.
Executives said that Ford remains on track to take $2 billion U.S. in costs out of the business this year through reductions in materials, freight, and manufacturing.
Ford’s stock is up 2% on news of its Q1 earnings and has risen 10% over the past 12 months to trade at $12.95 U.S. per share.