🚗 Ford suspends outlook for 2025!
Ford Motor Company $F beat Wall Street expectations for Q1 2025, but still suspended its financial outlook for the full year. The main reason is the expected impact of the new $2.5 billion tariffs that went into effect in early April. While the company plans to offset approximately $1 billion through operational measures and cost optimization, there remains a net impact of $1.5 billion.

📊 Q1 2025 key numbers:
Revenue: USD 40.7 billion (-5% y/y)

Adjusted EBIT: USD 1.02 billion (vs. USD 2.76 billion in Q1 2024)

Net Profit. USD 471 billion (vs. USD 1.33 billion in Q1 2024)

Earnings per share (EPS): USD 0.14 (vs. expected USD 0.02)

Automotive sales: $37.42 billion (vs. $36.21 billion expected)

⚠️ Traditional Division "Ford Blue" reported only 3% decline in sales, but EBIT fell by almost 90 % to $96 million. Commercial "Ford Pro" fell by 16 % in sales, while EBIT fell by more than $3 billion year-on-year .("Model e") reduced the loss from 1.33 to 849 million This is a slight improvement, but still deep in the red.

🔍 Worrying news for Ford and investors
25% Tariffs on imports of cars and parts from non-USMCA countries

Threat of supplier disruptions, including possible retaliation, European Union already preparing retaliatory tariffs if negotiations with the administration Donald Trump's administration fail.

Ford is not yet changing its production schedule, but it is making adjustments, such as halting exports to China or changes in import flows

Despite the challenging environment, the company plans to cut costs this year by USD 1 billion

💬 CFO Sherry House:
"Our results show the Ford+ plan is working - the company is on a higher growth trajectory, improving margins and capital efficiency. But geopolitical risks are causing us to be cautious."

Ford delivered above-average earnings per share and beat on sales, but faces huge challenges, whether because of tariff policy, falling sales or pressure on the electric vehicle segment. The suspension of the outlook is not because of panic and poor results, but because of the difficulty of predicting policy decisions and global developments.

The outlook for Q2 will be announced by the company at a later date when we see the real impact of tariffs on the supply chain.

What is your view on the automotive sector in these challenging conditions? Do you like the European or the US automotive industry better?