Ford sees semiconductor shortage easing, raises forecast


Its earnings per share and excluding special items were well ahead of expectations, coming in at 51 cents against 27 cents expected.

The American automaker Ford on Wednesday unveiled results exceeding expectations for the third quarter and, assuring that the shortage of semiconductors had eased a little, raised its forecasts for the whole year.

The stock of the company, which also indicated that it would start paying dividends again, jumped more than 4% in electronic trading on Wall Street. Ford’s revenue fell 5% between July and September to $ 35.7 billion. “It remains complicated to source semiconductors but the situation has clearly improved compared to the second quarter”, allowing a rebound in deliveries, the group said in a press release. Its net income fell 25% to $ 1.8 billion.

But adjusted per share and excluding one-time items, the preferred measure of Wall Street investors, earnings far exceeded expectations, posting 51 cents against 27 cents expected. For the year as a whole, the group has raised its forecast for adjusted profit before interest and taxes by around 1.5 billion dollars: it is now expected between 10.5 and 11.5 billion. Ford had already raised this forecast in July by $ 3.5 billion.

Semiconductor shortage

The group stands ready to meet strong demand as semiconductors, small components that have become indispensable in the manufacture of cars loaded with electronics, become more available: orders have increased by 50% compared to in the previous quarter for vehicles already on the market, assures the company. The group’s performance in 2022 will depend on several factors, including the dynamics between the availability of semiconductors, the number of vehicles produced and prices, said CFO John Lawler in the press release. Ford also foresees possible “Inflationary effects” on its costs, in particular on raw materials and transport.

.

Leave a Reply

Your email address will not be published. Required fields are marked *