UPDATE 1-Ford’s first-quarter adjusted profit falls

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April 24 (Reuters) – Ford Motor Co reported a fall in first-quarter adjusted profit on Wednesday, as the automaker navigates higher costs of labor and electric vehicle production.

Despite seeing a modest growth in EV sales, legacy automakers continue to see an overhang from higher costs in the supply chain required to produce those vehicles.

Meanwhile, American carmakers shifting to produce more EVs could face stiff competition from Chinese automakers making cheaper feature-packed EVs.

Ford and other companies have responded to the Chinese lead in EVs by focusing on hybrid vehicles.

Additionally, legacy U.S. automakers are also dealing with expensive labor contracts that they have signed with the United Auto Workers (UAW) union.

General Motors on Tuesday reported quarterly results that topped Wall Street targets and the automaker raised its annual forecast, citing stable pricing and demand for gasoline-engine vehicles.

Ford posted quarterly adjusted earnings of 49 cents per share for the quarter ended March 31, compared with 63 cents per share a year earlier.

Analysts, on average, expected Ford to report an adjusted profit of 40 cents per share, according to LSEG data. (Reporting by Nathan Gomes in Bengaluru; Editing by Sriraj Kalluvila)

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