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Ford Reports Better-Than-Expected Financial Results
As recently as three months ago, Ford was tempering its financial reporting with the realities of the semiconductor shortage. However, the automaker has managed the shortage well and as a reult of a strong order bank, and its new models Ford has reported better-than-expected results
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Having painted a rocky picture of its earnings and profit due to the ongoing chip shortage that caused the automaker to cut back on its production, idling assembly plants, including those that built its bread-and-butter pickup and SUV models, Ford has turned things around led by a strong order bank and an improving semiconductor chip outlook.
Ford Motor Co.
DETROIT Ford Motor Co.
on Wednesday posted second-quarter net income of $561 million, crediting strong demand for helping it stay in the black despite the ongoing global semiconductor shortage and improving its forecast for the rest of the year.
Ford s overall profit fell by about half from a year earlier, but it reported adjusted earnings of $1.1 billion before interest and taxes, up from a $1.9 billion loss in the second quarter of 2020 as the pandemic began. Its adjusted margin rose to 4 percent.
The automaker had warned that second-quarter net income would be substantially lower because of last year s one-time $3.5 billion gain on its investment in Argo AI.
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DETROIT (Reuters) -Ford Motor Co on Wednesday boosted its 2021 profit forecast after reporting better-than-expected quarterly results, lifting the No. 2 U.S. automaker’s shares nearly 3%.
The Ford 2021 Bronco SUV is seen on the assembly line at Michigan Assembly Plant in Wayne, Michigan, U.S., June 14, 2021. REUTERS/Rebecca Cook
While an ongoing global chip shortage cost Ford market share in North America, Europe and China, higher prices on more profitable models such as large pickups and SUVs helped increase revenue and operating profit in North America, its largest market.
Ford Chief Executive Jim Farley said the automaker was intent on shifting away from making vehicles that wind up stockpiled on dealer lots, to building them to customer orders, reducing discounts required to make a sale.