MICHIGAN: Ford Motor Co slightly exceeded earnings expectations in the first three months of the year as higher prices offset supply-chain snarls that have limited production.

       One day after rolling out an electric version of the F-150 pickup truck, Ford posted adjusted earnings per share of 38 US cents (RM1.66), topping the 36 US cents (RM1.57) analysts predicted on average.

       Adjusted earnings before interest and taxes of US$2.3bil (RM10bil) surpassed the US$1.8bil (RM7.8bil) analysts expected.

       “It was mixed,” Ford chief financial officer John Lawler said of the company’s first-quarter performance in a call with reporters.

       “We continue to have issues with supply of chips, which constrained us and in particular here in North America, it hit us disproportionately on our large vehicles, F-Series, Expedition, Navigator.”

       The automaker reiterated its 2022 earnings guidance of US$11.5bil to US$12.5bil (RM50.1bil to RM54.4bil) before interest and taxes.

       That would represent a gain of 15% to 25% over 2021’s profits.

       Ford’s income in the latest quarter was about half the level of a year ago, when it reported first-quarter earnings of US$3.9bil (RM17bil), or 70 US cents (RM3.05) a share.

       The results also compared poorly with rival General Motors Co’s (GM) first-quarter profit of US$2.09 (RM9.11) a share, excluding some items.

       GM kept its full-year outlook unchanged as well and said it expected to improved access to chip supplies in the second half.

       The launch of the battery powered F-150 Lightning is the culmination of a US$50bil (RM218bil) bet by chief executive officer Jim Farley that the 118-year-old automaker can challenge Tesla Inc and become a player in the electric-vehicle (EV) race.

       But Ford is beset by an intractable chip shortage that slashed F-Series truck sales by 31% in the United States in the first quarter.

       Ford shares more than doubled last year, but have investors turned cold on the automaker amid recession concerns and rising commodity costs that are being exacerbated by the war in Ukraine.

       Ford’s revenue in the first quarter of US$34.5bil (RM150.4bil), exceeding the US$32.2bil (RM140.3bil) analysts expected.

       However, wholesale shipments of nearly 970,000 vehicles were down 9% from a year earlier – the latest evidence that the chip shortage is hurting performance.

       Ford’s first-quarter revenue was down just 5% on the year – a reflection of a higher sticker prices.

       To flip Ford’s switch to EVs, Farley on March 2 cleaved the carmaker into two units – “Model e” to scale up EV offerings and “Ford Blue” to focus on traditional internal combustion engine vehicles.

       Farley is targeting US$3bil (RM13.07bil) in cost cuts in the legacy operations building gas-fired vehicles and that could include job cuts. — Bloomberg