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Ford's profits fell in the first quarter, but the automaker's shares intensified as Ford announced that a restructuring was underway.
The car manufacturer based in Dearborn, Michigan, said on Thursday that sales of pickup trucks and sport utility vehicles have helped improve performance in North America and that cost-cutting has allowed its European operations to realize benefits.
Net income for the first three months of the year decreased 34% to $ 1.15 billion, driven by charges of close to $ 600 million. Adjusted earnings amounted to 44 cents per share. Revenues dropped to $ 40.34 billion from $ 41.96 billion a year ago.
On average, analysts surveyed by FactSet were counting on earnings per share of 27 cents on a $ 40.3 billion business figure.
Ford shares jumped 9% in after-hours trading.
Ford said its operating profit increased $ 300 million to $ 2.4 billion, mainly because of better results in North America. In a press release, CFO Bob Shanks said the first quarter figures would likely be the highest in the year, but the results put Ford on track "to produce better results in 2019 than last year ".
The company is currently moving sedans to the US, closing international factories and cutting thousands of white-collar jobs. The majority of expenses in the first quarter came from the closure of a manufacturing plant in South America and the modernization of its operations in Europe.
Ford Credit recorded its best quarterly result since 2010, thanks to the residual value of leases and the performance of credit losses.
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