DEARBORN (WWJ/AP) — Ford Motor Co.’s net income fell by 35 percent to $1.6 billion in the first quarter as results were hit by costly recalls, lower sales and rising prices for steel and other materials.
Without one-time items, including a gain from the closure of a planned plant in Mexico, Ford earned 39 cents per share. Wall Street expected earnings of 35 cents per share, according to analysts polled by FactSet.
The Dearborn-based automaker told investors and analysts last month that it expected weaker first-quarter results. Last year’s first quarter was an all-time record for the company.
Ford says it remains on track to earn a full-year pretax profit of $9 billion. That’s down from $10.4 billion in 2016.
“One reason is the higher parts cost due to new launches, another part is investments in tech firms, and finally, there’s a nearly $300 million cost of a big recall,” WWJ Auto Reporter Jeff Gilbert said. “Then there’s the cooling market overall.”
But there is good news on the horizon, Gilbert reported.
“Things are expected to get better as the year goes on, but Ford’s full year 2017 profits are still expected to be off from last year,” he said.
Ford’s revenue climbed 4 percent to $39 billion in the first quarter.
(© Copyright 2017 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)