F Ford Motor Company

By Christina Rogers 

Ford Motor Co.'s first-quarter net profit rose 9% from a year earlier and the company, citing progress on cost-cutting initiatives, now expects to hit its 8% margin target two years ahead of schedule.

The No. 2 U.S. auto maker on Wednesday reported net income of $1.74 billion, up from the $1.59 billion profit it reported a year earlier, when higher costs, weak U.S. sales and unfavorable exchange-rate movements dented the bottom line.

Revenue increased 7% to $42 billion.

Adjusted earnings per share were 43 cents in the just-ended quarter, beating analysts' consensus of 41 cents a share as the car company reported better results from Ford Credit, its in-house lending arm, and narrower losses in South America.

Profits in North America and Europe were down in the first-quarter, and its Asia Pacific region booked lower results due to weak sales in China.

Ford reiterated guidance of lower profits in 2018, its third consecutive year of earnings declines. The Dearborn, Mich., auto maker also increased its cost-savings target to $25.5 billion by 2022, up from the $14 billion outlined last fall.

Write to Christina Rogers at christina.rogers@wsj.com

(END) Dow Jones Newswires

April 25, 2018 16:55 ET (20:55 GMT)

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