Ford made a big pile of money in the first three months of this year but still has a big problem on its hands, the European fate of Harley-Davidson could be in Joe Biden’s hands, and Lordstown Motors had an “unfortunate administrative error.” All that and more in The Morning Shift for April 29, 2021.
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1st Gear: Ford Made $3.3 Billion In The First Quarter
Hitting $3.3 billion, according to the Wall Street Journal, is Ford’s best result in a single quarter in years. There’s trouble both here and on the horizon, though, in the form of the global chip shortage.Ford says that we still haven’t seen the worst of that.
The negative reaction by investors is a mix of issues related to the chip problem following Ford reporting its results after the closing bell Wednesday.
While analysts were thoroughly impressed with the company s performance in the first quarter, which included a record $4.8 billion in adjusted pretax profits, they were far less impressed, if not confused, with its guidance for the year. Let s just put it like this: Ford s 1Q was far too good to extrapolate while the remainder of the year is too challenged to extrapolate, Morgan Stanley analyst Adam Jonas said in a note to investors.
Ford s stock closed Thursday at $11.26 a share, down 9.4%. Shares remain up 28.1% in 2021. The company s market cap is more than $44 billion.
Ford posts profit, says chip shortage may cut production 50% April 29, 2021 by (AP) Tom Krisher
(AP) 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.
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 Stock Sinks as Global Semiconductor Shortage Bites into Fiscal Year Outlook
2021-04-29 00:00:00
Brendan Fagan,
Stock Market Talking Points:
Federal Reserve Chair Jerome Powell reiterated the Fed’s accommodative stance, rates remain unchanged
Ford Motors posted strong earnings, but slashed FY outlook as semiconductor shortages impact production
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US equities closed lower on Wednesday, as Federal Reserve Chair Jerome Powell offered no surprises while fielding questions from the press. The Federal Open Market Committee (FOMC) left interest rates unchanged and remained committed to $120 billion in monthly asset purchases. Chair Powell indicated that the economy remains “quite a distance” from Fed targets, and it is still too early to foster any discussion of tapering asset purchases.
The company expects to lose factory output of 1.1 million vehicles for the year.
Apr 29th, 2021
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
DETROIT (AP) 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.