Ford’s net income down 35% in Q1

DEARBORN, MICHIGAN: Ford Motor Co’s net income fell by 35% to $1.6 billion in the first quarter as results were hit by costly recalls, lower sales and rising prices for steel and other materials.

Without one-time items, including a gain from the closure of a planned plant in Mexico, Ford earned 39 cents per share. Wall Street expected earnings of 35 cents per share, according to analysts polled by FactSet.

Revenue climbed 4% to $39 billion. The Dearborn-based automaker told investors and analysts last month that it expected weaker first-quarter results. Last year’s first quarter was an all-time record for the company.

Ford says it remains on track to earn a full-year pretax profit of $9 billion. That’s down from $10.4 billion in 2016.

Chief financial officer Bob Shanks told reporters that Ford’s higher costs for 2017 were incurred largely in the first quarter and results for the rest of the year would be “about flat to a little bit better.”