Along with other traditional automakers, Ford (F) is the latest company to report strong first-quarter sales this week.
According to Ford, U.S. sales in the first quarter rose 6.8% to 508,083 vehicles, supported by strong sales of electrified products such as hybrids and EVs. Sales of Ford's Maverick hybrid pickup truck increased 77% in the first quarter, its best quarter ever. Thanks to the Maverick, overall hybrid sales rose 42% to 38,421 units, with Ford claiming another best quarter for hybrids this year and that momentum continuing.
Ford's EV products, the Mustang Mach-E, Ford Lightning EV, and E-Transit commercial van, bucked the recent trend of softening demand. Across Ford's EV portfolio, sales of 20,223 EVs were up 82% in the first quarter, with Mustang Mach-E sales up 77.3% to 9,589 and Lightning pickup sales up 80.4% to 7,743. became. Sales have been strong here, but Ford relied on deep discounts, low financing rates and lease deals to move inventory.
However, the negative for Ford was the sales of its flagship product, the F-150. The F-Series (which includes the F-150, heavy-duty F-250 and F-350 products) remained America's best-selling truck, but sales for the quarter fell 10.2% to 152,943 It was a stand. Ford has been slow to see widespread adoption of its new F-150, which went on sale in March.
Nevertheless, investors cheered Ford's sales performance today, with shares up nearly 2% in midday trading.
“The new F-150 will play a major role in the gasoline, hybrid and electric vehicle segments of our business,” said Andrew Frick, president of Ford Blue, which is responsible for Ford's traditional gasoline and hybrid vehicles. will be fulfilled.'' “With sales of the new F-150 and new Ranger starting in March, as well as strong performance of the new Lincoln Nautilus and Nautilus Hybrid, we are in a strong position to generate profitable growth into 2024. ”
SUVs remain strong, with the Bronco Sport (up 5.7%), Escape (up 70.3%), Edge (up 73.3%), and Expedition (up 11.4%) among the rising vehicles. Vehicles that underperformed in the quarter included the Mustang, Ford's only “traditional” car (down 6.8%), and the automaker's popular full-size Bronco (sales fell 25.8% in the quarter). 24,000 units).
Ford's overall strong performance in the first quarter follows reports from traditional automakers like GM, Honda, Toyota, and Hyundai that are leveraging hybrid and gas-powered vehicles to offset weaknesses in EVs. However, like Ford, Korean automakers such as Hyundai and Kia Motors are also profitable. The same goes for the EV business.
Ford is scheduled to report full first-quarter results after the bell on Wednesday, April 24th. In late March, Ford CFO John Lawler reiterated the 2024 guidance Ford gave in early February, expecting adjusted earnings before interest and taxes (EBIT) to be between $10 billion and $12 billion. He said there was. , adjusted free cash flow will be $6 billion to $7 billion, and capital expenditures will be $8 billion to $9.5 billion. It is also noteworthy that the first quarter will be the first quarter in which Ford's new collective bargaining agreement with the United Auto Workers union takes effect.
Pras Subramanian is a reporter for Yahoo Finance.you can follow him twitter And even more Instagram.
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