Ford Q2 Profit Down, But Beats Estimates
Ford Motor Company (F) reported a profit in the second quarter that decreased on Tuesday despite better revenue. Both revenue and earnings managed to beat analyst estimates.
The company said that the net income was $561 million or $0.14 per share down from $1.17 billion or $0.28 per share last year. Excluding special items, the earnings were $0.13, compared to a loss of $0.35 in the same quarter last year.
Seventeen analysts polled by Thomson Reuters predicted the loss of $0.10 per share.
The revenue for the company increased to $26.80 billion from $19.40 billion last year. Ten analysts estimated revenues of $23.8 billion.
The company attributed the drop in income to the global semiconductor shortage. It expected a 50% drop in production. The loss in production was partially mitigated by a $1.1 billion increase to $15 billion in revenue in North America year-over-year.
Another positive in the quarter was the 12 million reservations of the F-150 Lightning electric vehicle which was launched in May.
Jim Farley, the president and CEO of the company said, “*Ford+ is about creating distinctive products and services, always-on customer relationships and user experiences that keep improving. And It’s already happening-there are great examples everywhere you tum at Ford, and the benefits for our customers and company will really stack up over time.”
The company has raised its guidance for earnings before tax on an adjusted basis by $3.5 billion to $9 billion to $10 billion for the full year. It also expects a cash flow between $4 billion to $5 billion.
The shares are currently trading at $14.39, up $0.55 or 3.82% in the after-hours market. Ford closed regular trading at $13.86, up $0.07 or 0.51%.
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