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• The automaker posted operating earnings of $2.3 billion, beating Wall Street expectations
Ford Motor Co (NYSE: F) posted strong quarterly earnings on Wednesday, keeping its operating earnings forecast unchanged for the full year.
Ford posted operating earnings of $2.3 billion in the first quarter, beating Wall Street expectations but still below teh $3.9 billion it reported a year ago.
The automaker posted net loss of $3.1 billion due to drop in the value of its stake in electric vehicle maker Rivian Automotive Inc (NASDAQ: RIVN). Ford owns 12% stake in Rivian, which lost about 52% of its market cap during the first quarter.
Chief Financial Officer John Lawler called Ford’s performance in the quarter “mixed,” adding that chip shortages affected the business.
"The capability of this business is much stronger than what we were able to provide in the quarter and that was due to the constraints," Lawler said.
Business headwinds
Automakers in the US have been facing several challenges including supply-chain disruptions, inflation of raw materials and rising U.S. interest rates.
Despite these challenges, Ford still expects $11.5 billion to $12.5 billion in operating earnings for the full year.
The company posted revenue of $34.5 billion, topping estimates of $31.1 billion, and reported operating profit of 38 cents a share in the quarter.
With the increasing demand of electric vehicles, Ford on Tuesday began manufacturing of its F-150 Lightning electric pickup truck. The new truck is the electric version of its bestselling F-150 truck.
Picture Credits: Ford
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