On Thursday, Ford Motor Company (NYSE: F) announced its financial results for the first quarter of 2017, with earnings beating estimates.
According to the company, total revenue was up 4% to $39.1 billion, automotive revenue increased from $35.3 billion the same period last year to $36.5 billion, beating estimates of $34.7 billion. Net profit for the first quarter decreased 36% from $2.5 billion, or $0.61 per share a year earlier to $1.6 billion, or $0.40 per share, but also beating analysts’ expectations of $0.35 per share.
The drop in net profit was due to the recall costs and investments in future products. In the first quarter, the costs were hurt by two recalls, one was to replace potentially faulty side door latches and the other one was for under-hood fire risks. Ford said that it needs $295 million to fix the problems.
“This quarter was an investment in Ford's future. From announcing exciting vehicles like the all-new Expedition and Lincoln Navigator, to initiatives such as our investment in Argo AI, we are fortifying our core business, while also investing in emerging opportunities that will deliver profitable growth,” Mark Fields, the President and CEO of Ford Motor, said in the statement.