Ford had a 3% profit margin in Europe in Q1, after three-quarters of its losses, despite a drop in sales.
Ford Motor posted better-than-expected financial results in Europe for the first quarter as the region returned to profitability after three-quarters of losses, the company said.
Net profit of € 197 million in Europe came despite declining vehicle sales due to supply chain disruptions, said CFO John Lawler.
“It was nice to see that even though we were hit by this, Europe had a better quarter than expected for us,” Lawler said.
Ford sales to dealers in Europe fell 9% to 254,000 from 278,000 in the same quarter last year, the figures show.
Revenues fell a smaller amount to $ 6.9 billion from $ 7.1 billion in the previous year as higher average prices partially offset declining sales.
Profits have almost halved, however, by a margin of 3 percent, compared to 4.8 percent for the same period in 2021, Ford figures show.
Ford has lost money in the region in the last three quarters
“The core trajectory of our business in Europe continues to improve,” Ford CEO Jim Farley said in a statement.
Overall, Ford posted a net loss of $ 3.1 billion in the first quarter due to a decline in its stake in electric truck maker Rivian.
Ford was profitable before accounting for Rivian’s investment, although adjusted earnings fell 41 percent from a year earlier to $ 2.3 billion before interest and taxes. The adjusted profit margin was 6.7 percent, down 4.1 percentage points.
Farley said Ford in Europe was “creating momentum for a fully electric future” as it launched the large E-Transit electric truck in the region.
The company will launch three more new passenger electric vehicles and four new commercial electric vehicles by the end of 2024, with the intention of selling over 600,000 electric vehicles per year by the end of 2026.