Ford loses $3.1 billion, hit by investment and chip shortage

Apr 27, 2022, 2:34 PM | Updated: 9:09 pm
A Ford F-150 electric truck is displayed at the Rouge Electric Vehicle Center, Tuesday, April 26, 2...

A Ford F-150 electric truck is displayed at the Rouge Electric Vehicle Center, Tuesday, April 26, 2022, in Dearborn, Mich. (AP Photo/Carlos Osorio)

(AP Photo/Carlos Osorio)

DALLAS (AP) — Ford Motor Co. reported Wednesday that it lost $3.1 billion in the first quarter, weighed down by its investment in an electric-vehicle startup, and its revenue slid as a shortage of chips limited the supply of pickups and SUVs in North America.

Company executives pointed away from the loss and toward results that excluded the lower value of its stake in Rivian. Ford said that it made $2.3 billion in pretax profit and is still on track to hit its full-year target for that measurement.

Ford said it sold 966,000 vehicles in the first quarter, down 9% from a year earlier.

Chief Financial Officer John Lawler said the quarter produced mixed results.

“Clearly the demand for our new products is very strong,” Lawler said, “yet 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.”

The chip shortage has caused Ford and General Motors to close multiple North American factories for a week or two at a time, including plants that build popular full-size pickups.

Ford executives said they also faced inflationary pressure from suppliers, but have been able to recover that in higher vehicles prices. They said additional increases were possible if inflation continues to run high.

The company said this week that it has built about 2,000 copies of its new electric pickup, the F-150 Lightning, at a plant near Detroit and would begin delivering them to customers. The truck is critical to Ford’s hopes of gaining a bigger share of electric-vehicle sales.

CEO Jim Farley said Wednesday that buyers of the F-150 Lightning are generally not traditional truck owners.

“The customer profile is dramatically younger. It’s in states like California and New York that we normally don’t sell full-size trucks,” he said on a call with analysts.

The appeal of electric vehicles to younger consumers helped drive investor interest in Rivian. Ford’s 12% stake was worth more than $10 billion after the startup’s IPO in November. But after nearly touching $180, the shares have since tumbled — they closed Wednesday at $31.22 — dragging down the value of Ford’s stake.

Ford’s loss contrasted with General Motors, which reported a $2.94 billion quarterly profit on Tuesday.

The first-quarter loss of $3.11 billion compared with a profit of $3.26 billion in the same period last year. Revenue skidded 9% lower that a year ago, to $34.48 billion. Ford said it earned 38 cents a share in the latest quarter after adjusting to exclude one-time items.

Analysts expected Ford to earn an adjusted 37 cents per share on revenue of $34.53 billion, according to a FactSet survey.

The company based in Dearborn, Michigan, stood by its target of achieving full-year earnings before interest and taxes of $11.5 billion to $12.5 billion.

Ford’s shares rose about 1% in after-hours trading after gaining 1% during the regular session.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

A Ukrainian serviceman changes his position at the frontline near Kharkiv, Ukraine, on Saturday, Ju...
Associated Press

Governor: Russians gaining foothold in pivotal Ukraine city

KYIV, Ukraine (AP) — Russian forces are strengthening their positions in a grueling fight to capture the last stronghold of resistance in eastern Ukraine’s Luhansk province, the region’s governor said Sunday. Ukrainian fighters have spent weeks trying to defend the city of Lysychansk, and to keep it from falling to Russia, as neighboring Sievierodonetsk did […]
2 hours ago
Associated Press

North Texas shooter kills 2, wounds 3 cops, takes own life

HALTOM CITY, Texas (AP) — A gunman killed two people and wounded four others, including three police officers, before taking his own life Saturday evening in the Dallas-Fort Worth area, police said. Haltom City Police Det. Matt Spillane said early Sunday that all of those wounded in the shooting in a residential neighborhood had non-life […]
1 day ago
FILE - In this Saturday, Oct. 1, 2011 file photo, Associated Press Special Regional Correspondent f...
Associated Press

Hope and despair: Kathy Gannon on 35 years in Afghanistan

KABUL, Afghanistan (AP) — The Afghan policeman opened fire on us with his AK-47, emptying 26 bullets into the back of the car. Seven slammed into me, and at least as many into my colleague, Associated Press photographer Anja Niedringhaus. She died at my side. Anja weighed heavy against my shoulder. I tried to look […]
1 day ago
FILE - In this Monday, Nov. 18, 2019 file photo, the logo of Google is displayed on a carpet at the...
Associated Press

Google to erase more location info as abortion bans expand

Google will automatically purge information about users who visit abortion clinics or other places that could trigger legal problems now that the U.S. Supreme Court has opened the door for states to ban the termination of pregnancies.
1 day ago
FILE - President Joe Biden, center, meets with South Korea's President Yoon Suk Yeol, left, and Jap...
Associated Press

North Korea slams US-South Korea-Japan military cooperation

SEOUL, South Korea (AP) — North Korea on Sunday slammed the United States, South Korea and Japan for pushing to boost their trilateral military cooperation targeting the North, warning that the move is prompting urgent calls for the country to reinforce its military capability. North Korea has long cited what it calls hostility by the […]
1 day ago
FILE - Uvalde School Police Chief Pete Arredondo, second from left, stands during a news conference...
Associated Press

Uvalde schools’ police chief resigns from City Council

The Uvalde school district’s police chief has stepped down from his position in the City Council just weeks after being sworn in following allegations that he erred in his response to the mass shooting at Robb Elementary School that left 19 students and two teachers dead. Chief Pete Arredondo said in a letter dated Friday […]
1 day ago

Sponsored Articles

(Courtesy Condor)...
Condor Airlines

Condor Airlines shows passion for destinations from Sky Harbor with new-look aircraft

Condor Airlines brings passion to each flight and connects people to their dream destinations throughout the world.
...
CANVAS ANNUITY

Best retirement savings rates hit 4.30%

Maximize your retirement savings with guaranteed fixed rates up to 4.30%. Did you know there is a financial product that can give you great interest rates as you build your retirement savings and provide you with a paycheck for life once you retire? It might sound too good to be true but it is not; this product is called an annuity.
...
Arizona Division of Problem Gambling

Arizona Division of Problem Gambling provides exclusion solution for young sports bettors

Sports betting in Arizona opened a new world to young adults, one where putting down money on games was as easy as sending a text message.
Ford loses $3.1 billion, hit by investment and chip shortage