Ford Motor Company (NYSE:F) has reported a net income after tax at $924 million (down 19%) in 1Q2015. The drop is mainly due to product changeover that halted the production for more than a month.
Lack of new vehicles supply following the product switchover has caused the drop in net income. The company has renovated with lightweight aluminum body for its best selling model F150 pickup truck for more than three decades in North America.
According to analysts, F-series pickup trucks contribute to more than 50% of the net income.
Meanwhile, Ford’s revenue has declined to $33.9 billion (down 5.6%).
Ford reaffirms its stand for the full year
The company has forecasted its profits between $8.5 billion and $9.5 billion before tax for the full year. The assured guidance follows cost cutting measures in South America and enhanced profits in North America.
According to chief executive Mark Fields, after a good start in 1Q2015 the company is expected to post excellent results because the new launches started paying dividends. He is also optimistic that the company will capitalize on the acceleration of One Ford Plan with the product innovation and excellence.
Ford has reported income from its North America operations before tax at $1.3 billion (down 10.7%) on revenue of $20 billion (down 2%).
The company has cut losses in its South American operations to $189 million before tax from $510 million last year on revenue of $1.5 billion (21%). Though the company was able to leverage on One Ford profits to boost market share, its volumes were thin.
Ford Motor Company (NYSE:F) has also been able to reduce losses in its European operations to $185 million before tax from $194 million on revenue of 6.9 billion (down 11.5%).
The company’s profits in Asia Pacific have declined to $103 million before tax from $291 million on revenue of $2.3 billion (down 11.5%).
Ford had stopped production at its Michigan plant for over a month previous autumn to launch revamped model F150.
