Ford Motor Company NYSE: F released its earnings report on Thursday with mixed results, as the company’s stock dips nearly 1% in early-morning trade. The company’s first-quarter profits were hit by recalls, while the company’s revenue hit $39 billion. Thomson One expected the company to post revenue of $34.7 billion.
Ford had two major safety recalls that cost the company $295 million. The recalls included a faulty engine that was at risk of fire and door latch problems.
The automaker posted a $0.39 EPS on the quarter, beating estimates of $0.35 EPS.
Ford’s sales were boosted by strong performance in Asia Pacific, Europe and North America. The company’s truck and SUV units saw a 4% revenue increase, with the company’s F-150 and Super Duty trucks leading the growth.
The company’s unit saw per-transaction growth of $1,971 compared to the same period a year prior.
Ford Motor Company NYSE: F Income Dips
Strong revenue was dampened as net income dipped 35% on the quarter, with pre tax profits down over 40% to $2.2 billion.
North America demand is starting to wane, causing concern for investors. The segment has forced Ford and other competitors to invest heavily in new technologies, including autonomy and alternative fuels.
Ford Motor Company NYSE: F’s lower profits were attributed to higher investment in new products, commodity costs and higher warranty costs.
Ford reaffirmed its 2017 outlook, stating that adjusted pretax profit was estimated to be around $9 billion. The company plans to release several new models this year, including a new F-150 truck later in the year as well as a new Ford Expedition.
The figure is down from $10.4 billion in 2016.
Ford noted that the first quarter of the year was the toughest quarter for the company. The company states that the rest of the year will be about flat or a little better than 2016. The automaker notes that used car values are down, which may hurt automaker sales in the future.