Ford Motor reported a rebound in profits in the first three months of the year, thanks in part to an expected $1.3 billion refund of federal import tariffs that were struck down by the Supreme Court.
The company said it earned $2.5 billion in the first quarter, up from $500 million a year ago, while its revenue climbed 6 percent to $43.3 billion.
“Ford has had a good start to the year,” the company’s chief financial officer, Sherry House, said in a conference call with reporters.
Ms. House added that Ford raised its profit outlook for the year by $500 million and now expects earnings before interest and taxes, adjusted for special items, of $8.5 billion to $10.5 billion. Ford expects to pay about $1 billion in U.S. tariffs this year, half of what it previously expected.
The tariff refund is the result of a February ruling by the Supreme Court that President Trump exceeded his authority by imposing tariffs under the International Emergency Economic Powers Act of 1977. This law grants the president certain powers in times of national emergency. This month, the administration implemented a system through which businesses can request reimbursements.
Even though the court canceled the emergency tariffs, other levies on imports of steel, aluminum, automobiles and auto parts remain in place because they were imposed under a different law.
On Tuesday, General Motors announced it expected to receive $500 million in tariff refunds. Although the refunds have not yet been paid, both automakers reported their gains in the first quarter.
Some of the good news on pricing will be offset by higher costs elsewhere.
Ms House said Ford now expected the cost of its raw materials – for materials such as aluminum and steel – to rise by about $2 billion this year, double the amount previously expected. Ms. House said the company was experiencing aluminum shortages even before the U.S.-Israeli war in Iran began, and that the conflict had increased costs and further reduced supplies.
Ford has struggled to find enough aluminum since last fall, when its supply was disrupted by a serious fire at an Oswego, N.Y., plant owned by Novelis.
Ford said it sold 934,000 cars and light trucks worldwide in the first quarter, down 4 percent from the same period last year. Its electric vehicle business lost $777 million excluding certain items, an improvement from last year, when it lost $849 million.
The automaker earned $1.9 billion from selling gasoline-powered cars and trucks, and $1.7 billion from its Ford Pro division, which provides vehicles and services to business customers.
