Ford Motor Co. had what executives dubbed a "mixed" performance in the first quarter, but the automaker signaled it sees supply-chain constraints improving in the second half of the year.
Still, executives said supply-chain management will be an even more pressing issue as the automaker electrifies more of its lineup — with the raw materials needed for electric-vehicle batteries being a significant focus.
The Dearborn automaker posted a $3.1 billion net loss on revenue of $34.5 billion Wednesday. That's down from the first quarter of 2021, when it reported a $3.3 billion profit on $36.2 billion in revenue.
The net loss was due to a $5.4 billion loss on its investment in EV startup Rivian Automotive Inc., whose stock has faltered in recent months amid production challenges. Ford's stake was valued at $5.1 billion at the end of March, down from $10.6 billion at the end of 2021.
Meanwhile, Ford reported $2.3 billion in adjusted earnings before interest and taxes — a financial metric that does not include special items such as the stake in Rivian. Adjusted EBIT was down from $3.9 billion in the same period last year.
Despite the supply-chain and production challenges the automaker faced in the first quarter, it maintained its full-year guidance of $11.5 billion to $12.5 billion in adjusted EBIT. The company expects chip supplies to improve in the second half and for full-year vehicle wholesale volumes to increase 10% to 15% over 2021.
Meanwhile, crosstown rival General Motors Co. on Tuesday reported a $2.9 billion profit for the first quarter, down slightly from the $3 billion it reported a year ago.
GM executives pointed out high commodity and logistics costs, which totaled about $1 billion in Q1.
The Detroit automaker, too, signaled it sees semiconductor chip supplies improving, and reaffirmed its guidance of adjusted earnings in the range of $13 billion to $15 billion for the year.
Stellantis NV reports its revenues and shipments on May 5, and will report first-half earnings July 26.