Ford reported earnings of $1.2 billion in the first quarter, or $0.60 per share, down 38% from last year. The company now expects to break even or lose as much as $0.15 per share in the second quarter. For now, however, it is maintaining its full-year guidance of between $1.25 and $1.50 per share. If its second-quarter results fall too far into negative territory, I wouldn't be surprised to see those numbers adjusted lower.
Ford's automotive unit continues to suffer from lower volumes, higher costs, and lower pricing in its core North American business. Its North American automotive business posted profits of $579 million, down 67% from last year.
Ford's finance unit remains the lone bright spot. However, it can't expect its finance unit to continue carrying the bulk of the load, particularly when it's making operating income gains of only 3%.
Hoping to slow the bleeding, Ford further cut its North American production forecast to 4.8% below last year's levels. While profits will suffer, it's a necessary move, since inventories remain high.
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Fool contributor Mike Cianciolo welcomes feedback and doesn't own any of the companies in this article.