The group announced a net profit due to the recovery in US consumption. “Signs of improvement in semiconductor flow,” he states.
US automaker Ford raised some of its full-year guidance on Wednesday, after balancing semiconductor problems in the second quarter with price increases on strong demand for its vehicles.
The group had warned that it expected production to decrease by about 50% over the period due to the lack of electronic chips affecting the entire industry, which would have resulted in losses. Ford had to temporarily close some factories due to the lack of these small parts, which have become indispensable in automobile production. But at the same time, the company has also benefited from strong demand for its cars, pickup trucks and trucks.optimize revenue and profitby offering fewer promotions and focusing on the most profitable vehicles. Average prices in North America rose 14% year-on-year.
Thanks to these measures, a net profit of 561 million dollars was achieved. On a per-share basis and excluding special items, the preferred measure by Wall Street investors was 13 cents as analysts expected a small loss.
Increase in US consumption
The group’s boss, Jim Farley, stressed during a conference call that he is currently meeting “signs of improvement in semiconductor flow“. “Situation remains fluid, especially due to difficult recoveryHe added that Japanese group Renesas, one of Ford’s main suppliers, was affected by a fire in March. the problem may persistuntil the first half of 2022“, the management guessed.
Many Americans, whose wallets have been bloated by government donations and savings during the pandemic, are currently trying to take advantage of low interest rates to buy a new car. Those who already own a vehicle are more encouraged to do so as resale prices are currently very high.
Ford’s sales reached $26.75 billion, up 38% from April to June compared to the same period in 2020, when the spread of Covid-19 caused the temporary closure of many factories. For the full year, the group increased its adjusted profit before interest and taxes forecast by approximately $3.5 billion: currently expected to be between 9 and 10 billion.
The success of new models
The automaker said higher sales volumes must more than offset higher raw material costs or lower profits in Ford’s finance arm. Car bookings were seven times higher at the end of June than at the same date last year. “With current and projected additional demand for certain models, including the Bronco SUV and later the Maverick and F-150 Lightning pickups“, company “Preparing to recover when semiconductor sources stabilize‘, Jim Farley assured.
The executive said the group’s new electric models are particularly popular, whether it’s the Mustang Mach-E, which is already on the market, or the F150 Lightning, which has already received 120,000 pre-orders since its presentation in May. The group’s move was 3.5% in electronic commerce following the closure of the New York Stock Exchange.