Ford Q1 earnings: $3.1 billion net loss tied to Rivian stock plunge; execs affirm full-year outlook

DETROIT — Ford Motor Co. on Wednesday posted a first-quarter net loss of $3.1 billion attributable to a drop in the value of a Rivian stake but affirmed guidance for the year despite continued production limitations.

Ford was profitable before accounting for the Rivian investment, though adjusted earnings fell 41 percent from a year earlier to $2.3 billion before interest and taxes. Its adjusted profit margin was 6.7 percent, down 4.1 percentage points.

Revenue during the latest quarter fell 5 percent to $34.5 billion. The value of Ford’s Rivian shares fell by more than half to $5.1 billion during the quarter. The EV startup’s stock tanked from about $102 per share at the beginning of the year to about $50 on March 31.

Ford said the industry’s ongoing microchip shortage hampered company production in January and February but that March output was higher. Its wholesale shipments fell 9 percent in the quarter to about 970,000.

“The capability of this business is much stronger than what we were able to provide in the quarter,” CFO John Lawler told reporters.

Lawler said Ford had about 400,000 vehicles in order banks at the end of March and that strong pricing in the quarter helped offset rising commodity costs and inflation effects.  

Ford made $1.59 billion in the quarter in North America, down from the $2.9 billion it earned there a year ago. It made $50 million in South America, $207 million in Europe, and $96 million in its International Markets Group. It lost $53 million in China.

Aside from a quarterly improvement in South America, it performed worse in each of its other business units compared to the same period a year ago.

The automaker reaffirmed its full-year guidance of $11.5 billion to $12.5 billion in adjusted EBIT, which would mark a 15 to 25 percent rise from 2021. Ford expects production volumes to increase between 10 and 15 percent over 2021 levels.

Ford shares gained 2.5 percent to $15.20 in aftermarket trading Wednesday.

Rivian shares rose 1.7 percent to close Wednesday at $31.22.