Ford Motor mentioned on Wednesday it misplaced $3.1 billion within the first three months of the yr on account of a pointy decline within the inventory value ofan electrical car start-up that took a stake. Ford has additionally been hit by slowing gross sales ensuing from an ongoing scarcity of laptop chips.
Excluding its inventory decline in Rivian, Ford mentioned it earned $2.3 billion earlier than curiosity and taxes, down from $3.9 billion a yr earlier. Its internet revenue within the first quarter of 2021 was $3.3 billion.
Ford chief monetary officer John Lawler mentioned the corporate is seeing sturdy demand for its sport utility autos and pickup vehicles, however it may well’t produce sufficient of them. “We didn’t have sufficient chips to construct the autos prospects wished, and we couldn’t take full benefit of our manufacturing capability,” he mentioned on a convention name.
Ford mentioned its first-quarter income fell to $34.5 billion from $36.2 billion a yr earlier. The corporate offered 966,000 autos within the first quarter, up from 1.1 million a yr in the past. Larger new car costs helped Ford and different automakers offset among the affect of decrease gross sales.
The corporate’s efficiency contrasted with that of two main rivals. On Tuesday, Common Motors introducedand final week, .
Lawler mentioned Ford was taking steps to extend its semiconductor provide and anticipated its manufacturing charge to enhance through the yr. It is usually relying on fast progress in gross sales of electrical autos. The automaker, which just lately began producinggoals to fabricate 600,000 electrical automobiles and vehicles per yr by the tip of 2023.
Ford mentioned its outlook for 2022 was unchanged and it expects annual revenue of $11.5 billion to $12.5 billion earlier than taxes and sure different bills. Earlier this yr, he predicted he would see “considerably larger earnings in North America” in 2022 and that world gross sales would decline barely within the first quarter however improve 10-15% for the total yr. .
Ford invested $500 million in Rivian in 2019, and the startup’s shares rose sharply after an preliminary public providing final fall. Its inventory was buying and selling at round $100 on the finish of 2021, however has fallen to round $31 as Rivian struggled to ramp up manufacturing of an electrical pickup truck, electrical SUV and supply van. for Amazon.
To mirror this drop in Rivian’s share value, Ford took a non-cash cost from its earnings, Lawler mentioned.