Ford reports $1.76 billion in 1Q earnings, primarily from gas-powered vehicles.

In the first quarter of this year, Ford Motor Co. reported a net income of $1.76 billion, marking a significant improvement compared to a net loss of $3.1 billion for the same period last year. The company’s internal-combustion engine vehicle unit, Ford Blue, generated $2.62 billion in profits before taxes, and Ford Pro, the commercial vehicle unit, contributed $1.37 billion. However, Model e, Ford’s electric vehicle unit, suffered a loss of $722 million before taxes.

Ford is optimistic about its future and has reiterated its earlier guidance for a full-year pretax profit of $9 billion to $11 billion. Excluding one-time items, the company made 44 cents per share, which beat Wall Street’s expectation of 42 cents. Furthermore, the company’s revenue increased by 20% to $41.74 billion, which was higher than analysts’ estimate of $39.25 billion.

The company’s success was largely attributed to its performance in the US, its most lucrative market, where Ford sold just under 472,000 vehicles from January through March, a 9.9% increase from the previous year. Additionally, Ford continued to receive strong prices for its vehicles, with an average sale price of $56,534, according to Edmunds.

Ford has also made moves to remain competitive in the electric vehicle market. The company has cut prices on its Mustang Mach E electric SUV to attract new buyers and remain competitive in the crowded small electric SUV segment of the market. However, CEO Jim Farley has stated that the company is focusing on building a profitable electric vehicle business and will not simply price its vehicles to gain market share.

Despite its positive results, Ford’s shares closed down 2.2% on Tuesday, and they fell an additional 2% in extended trading after the earnings were announced. Nonetheless, the company is committed to improving its bottom line by reducing costs and improving production stability, as it looks forward to a brighter future.