Jim Farley, Ford CEO, takes off his mask at the Ford Built for America event at Ford’s Dearborn Truck Plant on September 17, 2020 in Dearborn, Michigan.
Nic Antaya | Getty Images
DETROIT – Ford Motor exceeded Wall Street expectations for the first quarter and raised its profit forecast for the year despite global chip inventory levels being low, vehicle inventories exhausted and the company closing some of its factories.
Here’s how Ford compared to Wall Street’s expectations based on Refinitiv’s average estimates.
- Adjusted result: 89 cents compared to the expected 21 cents
- Automobile sales: $ 33.55 billion versus $ 32.23 billion
Ford previously expected the parts problem could cut its profits by $ 1 billion to $ 2.5 billion in 2021. Without releasing any new guidance, the company said last month it would “provide an update on the financial impact of the semiconductor shortage” when it reports its first quarter results.
On a more positive note, the lower inventory levels and lack of production have resulted in higher profits per vehicle for automakers.
Wall Street is also awaiting further business changes from Ford CEO Jim Farley, who replaced Jim Hackett effective October 1, as well as updates to the company’s electric vehicle plans.
Ford announced on Tuesday that it would “eventually” manufacture its own batteries and cells. However, the company declined to discuss a timetable for this. In November, Farley said Ford was “absolutely” keen to follow Tesla and General Motors in making their own batteries for electric vehicles in the US
Ford’s shares have risen nearly 90% since Farley became CEO, including more than 40% in 2021. The company’s market capitalization is more than $ 48 billion.
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