Ford Freezes Guidance, Assesses Tariff Impact

Ford Motor reported far better-than-expected first-quarter results but foresees a steep hit to full-year profits and has suspended its financial guidance.

The company suspended its guidance and flagged $1.5 billion in potential tariff impacts. I Photo: Ford

CFO Sherry House said Ford is “focusing on managing what we can control,” Al Root, Anita Hamilton, and Janet H. Cho reported for Barron’s Daily. Ford is the best-positioned of the traditional automakers to weather Trump’s tariffs. More than 80% of the vehicles it sells in the U.S. are assembled domestically.

It ships vehicles made abroad via bonded carriers that aren’t subject to tariffs and has stopped exporting vehicles to China. Still, Ford expects the tariffs to sting.

The company suspended its guidance and flagged $1.5 billion in potential tariff impacts. First-quarter vehicle sales were solid, partly because dealers, anticipating tariffs, made early purchases. Ford expects prices to remain flat for the year.

An adjusted operating profit of $1 billion and earnings per share of 14 cents—on $40.7 billion in sales—beat projections of $171 million in operating profit and break-even earnings per share on $38 billion in sales, according to FactSet.

General Motors, by contrast, expects $4 billion to $5 billion in tariff-related hits to its operating profit, as it imports about 45% of its U.S.-sold vehicles, mainly from Mexico.

Ford shares have moved an average of about 9% following the past four quarterly reports. The stock is up about 4% this year—roughly seven percentage points ahead of the S&P 500 and far outpacing its peers.