Ford lowered the top end of its full-year guidance, with the semiconductor shortage costing an estimated $2.5 billion. The company now expects to lose 1.1 million units of production throughout 2021.
Ford posts surprising big profit, but chip shortage may cut production 50% Autoblog 1 hr ago Associated Press
DETROIT Ford Motor Co. posted a surprising $3.26 billion first-quarter net profit on Wednesday, but the company said a worsening global computer chip shortage could cut its production in half during the current quarter.
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Chief Financial Officer John Lawler said the second quarter should be the low point for the chip shortage, but it probably will last into next year. The situation will improve in the second half, but Ford still will see production fall 10% over original plans, he said. That means Ford won t be able to make up for any lost production this year. But CEO Jim Farley said Ford will work to limit the 10% cut.
Ford lowered the top end of its full-year guidance, with the semiconductor shortage costing an estimated $2.5 billion. The company now expects to lose 1.1 million units of production throughout 2021. Ford Europe generated a $341 million profit in the quarter.
Ford warns 2nd-quarter output will fall by 50 pct amid chip shortage
Michael Martinez, Automotive News
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Ford Motor Co. on Wednesday posted its highest first-quarter net income in a decade but said it could lose half of planned production in the second quarter due to the semiconductor shortage that has halted some high-profit assembly lines.
The automaker said it earned $3.3 billion from January through March as it recovered from the coronavirus pandemic that resulted in a $2 billion net loss a year earlier.
Adjusted earnings before interest and taxes rose to $4.8 billion in the first quarter from a $600 million loss in the same period a year ago. Its adjusted margin rose to 13.3 percent.
Ford posts profit, says chip shortage may cut production 50%
Tom Krisher
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FILE - In this Sunday, Oct. 11, 2020, file photo, a row of 2020 sports-utility vehicles pickup trucks sits at a Ford dealership, in Denver. Ford Motor Co. says it made $3.26 billion in the first quarter, helped by rising vehicle prices and in spite of production cuts due to a global shortage of computer chips. The earnings reversed a nearly $2 billion net loss from a year ago, when Ford burned through cash at the start of the coronavirus pandemic. (AP Photo/David Zalubowski, File) (Copyright 2020 The Associated Press. All rights reserved.)