Ford overcame supply chain challenges to report higher vehicle sales and reaffirm its outlook for the year, but is “actively looking” to offset costs as inflationary pressures mount.
The automaker reported revenue of $40.2bn in the second quarter, a 50 per cent jump from the same period last year, thanks to a 35 per cent increase in wholesale shipments of its vehicles. Analysts expected $34.3bn, according to a Refinitiv survey.
Net income rose about 19 per cent from a year ago to $667mn, or 16 cents a share. The company’s earnings before interest and taxes were $3.7bn, more than triple the figure a year earlier, equating to adjusted earnings of 68 cents a share. Analysts expected 45 cents a share.
Ford said it expected strong demand and pricing to continue for the rest of the year, predicting it would offset “about $4bn in headwinds from commodity prices”.
However, Ford is “actively looking at opportunities to offset [cost] increases” as it anticipates inflationary pressures of $3bn for 2022, up from $1bn it predicted a few months ago.
Still, that gave the company enough confidence to reaffirm its full-year guidance for Ebit of $11.5bn to $12.5bn, which would be an increase of 15 to 25 per cent above last year’s pre-tax profit.
Ford shares were up 6.4 per cent in after-hours trading.
The company was reported in recent weeks to be planning to cut thousands of jobs as it refocuses on electric vehicles. But chief executive Jim Farley gave little away when asked about the issue during the analysts’ call.
“We absolutely have too many people in certain places, no doubt about it,” he said on Wednesday. “We have skills that don’t work anymore” as the company reshapes itself around electric vehicles.