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Ford said it recorded a revenue of $39.1bn, posting $1.6bn as net income as well as $2.2bn adjusted pre-tax profit in the first quarter of 2017.
“This quarter was an investment in Ford’s future. From announcing exciting vehicles like the all-new Expedition and Lincoln Navigator, to initiatives such as our investment in Argo AI, we are fortifying our core business, while also investing in emerging opportunities that will deliver profitable growth.” Mark Fields, President & CEO said in a statement issued by the U.S. carmaker.
According to statement, first quarter total company revenue was $39.1bn, up 4 percent year over year, driven by favorable mix. It added that EPS was $0.40 and adjusted EPS was $0.39. Explaining that lower profit year over year was driven by higher cost, lower volume and unfavorable exchange, it attributed higher cost to warranty, investments in new products and emerging opportunities for future growth, and rising commodity costs .
The company further explained that average transaction prices in the U.S. were up $1,971 year over year, nearly four times more than the industry average of $506, driven by F-150, Super Duty and Lincoln, stressing that automotive results were driven by North America; Europe and Asia Pacific were also profitable.
Also commenting on the result, Ford’s Executive Vice President & CFO, Bob Shanks, said: “Ford’s balance sheet remains strong – ready and able to support our plans for growth and to protect against adverse changes in the business cycle. We’re also pleased to have rewarded shareholders with distributions in the quarter of $800 million, including a supplemental dividend.”
