CFO John Lawler called the results “mixed,” saying a persistent chip shortage hit the company hard, especially on its large and most profitable vehicles — the F-Series pickup, Expedition and Navigator SUV.

Ford's first-quarter operating profit of $2.3 billion beat estimates but well below $3.9 billion

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Ford’s first-quarter operating profit of $2.3 billion estimates but well below $3.9 billion

Ford Motor Co reported better-than-expected quarterly results on Wednesday and maintained its earnings forecast for the year, citing strong vehicle pricing that offset higher costs and inflation. CFO John Lawler called the results “mixed,” saying a persistent chip shortage hit the company hard, especially on its large and most profitable vehicles — the F-Series pickup, Expedition and Navigator SUV. “This business is much more capable than we were able to deliver this quarter due to constraints,” Lawler said, citing about 53,000 cars that have been built but not yet shipped as they wait for final part chips shortage.

Ford and other automakers have been hit by supply chain disruptions, raw material inflation and rising U.S. interest rates, but Lawler said higher vehicle prices have mostly offset those pressures.

A day earlier, GM also pointed to strong sales pricing for more expensive models as its first-quarter results expectations.

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Ford’s operating profit of 38 cents per share analysts’ expectations by a penny. Revenue of $34.5 billion also beat expectations of $31.1 billion

Ford’s Lawler doesn’t rule out further price increases if the company faces further cost inflation. He also said Ford was aggressively cutting costs ahead of possible further inflation.

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Ford’s first-quarter operating profit was $2.3 billion, beating expectations but well below the $3.9 billion a year earlier. The write-down of its stake in electric vehicle maker Rivian Automotive Inc led to a net loss of $3.1 billion in the first quarter.

The automaker’s operating profit of 38 cents per share analysts’ expectations by a penny. Revenue of $34.5 billion also beat expectations of $31.1 billion.

Ford reiterated its full-year operating income forecast of $11.5 billion to $12.5 billion, citing strong demand and pricing.

The company has also sparked enthusiasm for new models, including the F-150 Lightning electric pickup, which began mass production on Tuesday amid surging demand.

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