Dearborn – Ford Motor Co.'s profits fell 34% in the first quarter. But the quarter's results were better than expected, according to Ford CFO Bob Shanks, who said the changes made by general manager Jim Hackett to the builder were taking effect.

Ford achieved $ 1.1 billion on revenue of $ 40.3 billion, down 4%. Ford announced that its adjusted earnings before interest and taxes increased by $ 300 million to $ 2.4 billion. The decline in profits comes largely from global restructuring efforts, said Shanks. The automaker had a $ 600 million fee for deciding to pull out of the heavy truck market in South America and restructure itself in Russia and Europe.

It exceeded badysts' estimates that earnings per share would be 27 cents. The automaker reported earnings per share of 29 cents and adjusted earnings of 44 cents.

"We are very encouraged by the good start of the year," said Shanks. "If you do things well, you make difficult calls, you allocate capital in the right way, you take into account your costs, you think about your customers … you do things well, it takes time, but goodness comes from I think we are starting to see the signs. "

Ford has seen its profits grow in North America because of its decision to remove sedans and small cars in this market just a year ago, said Shanks. This has already allowed Ford "to save hundreds of millions of dollars," he said. Ford's North American business posted a profit of $ 2.2 billion, up 14% over the previous year. The automaker also said that its North American business had an operating margin of 8.7%. Ford executives aim for a 10% margin in North America and 8% in other companies around the world.

Ford lost a total of $ 196 million from outside North America to Europe, South America, the Middle East and Africa, China and the Asia-Pacific region.

The results come after Ford Profits fell 50% in 2018. Hackett, appointed CEO in May 2017, spent nearly two years stirring the bridge and cutting costs discreetly at the automaker's Dearborn. Since the beginning of the year, Ford has announced job cuts, plant closures or product changes in South America, Europe, Russia and China, as well as partnerships with key players outside the United States, which has pushed up prices – stay in love.

Ford's shares are still down more than 15% since Hackett's appointment as CEO two years ago.

Shanks said Ford hoped the profits for 2019 would be higher than those announced by the company in 2018, although he refused to give details. He said the first quarter results would be the strongest of the year for Ford, the company starting to launch a series of new vehicles starting in the middle of the year.

Shanks said new vehicles such as the mid-size Ranger pickup launched in January are already profitable.

Hackett repeated recently that 2019 will be a year of action for Ford. The automaker announced on Wednesday that it would invest $ 500 million in Rivian Automotive LLC, a new electric vehicle company based in Plymouth, and partner with the company to build an unnamed electric vehicle. The decision came just weeks after Bloomberg announced that talks on the partnership between Rivian and General Motors Co. had failed.

In the meantime, Ford is approaching the end of a long process to reduce its global payroll, which will include job cuts in North America. The automaker plans to complete these reductions by the end of the second quarter.

Analysts had predicted that Ford's first-quarter results could be the largest in years. First, because better than expected results could show that Hackett's plan for society works. Hackett is pushing Ford to reduce its operating costs by $ 25.5 billion. The automaker also plans to spend $ 11 billion to restructure the company around the world.

Shanks said Thursday that the decisions of Hackett and Ford's management team over the past two years were starting to yield results within Ford. These results are also beginning to appear in the balance sheet, he said.

"(This) is not a restructuring," Shanks said. "It's a reinvention, a review of what this business is and what it will be in the future. It's a different company. Not just fewer plants, neither this nor that, nor the normal things. different company. "

Twitter: @Ian_Thibodeau

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