Ford Motor Co on Wednesday reported a stronger-than-expected third-quarter profit and raised its full-year earnings forecast as strong demand for its trucks helped offset the hit from a global semiconductor shortage.
Ford said increased availability of chips and higher wholesale vehicle shipments in the third quarter enabled it to post higher profit, revenue and cash flow from the previous quarter. The worldwide shortage of computer chips has left car manufacturers unable to complete assembly of some new vehicles.
In an indication that it is managing the chip shortage better than its rival, Ford, with sales of $35.7 billion, generated more revenue than competitor General Motors Co. GM earlier on Wednesday reported quarterly revenue of $26.8 billion.
The carmaker announced it will restore a quarterly dividend, paying shareholders 10 cents a share or $400 million in total in the fourth quarter.
In an earnings call after the stock-market close, Chief Financial Officer John Lawler said Ford expects fourth quarter wholesale volume to rise 10%, after jumping 30% from the second quarter to the third. Wholesale shipments are largely to dealers.
Ford's net income was $1.8 billion, down from $2.4 billion a year earlier.
Adjusted operating earnings were $3.0 billion, compared with $3.6 billion the previous year. Ford increased its guidance for full-year adjusted operating earnings to between $10.5 billion and $11.5 billion.
Earnings per share were 45 cents, compared with 60 cents in the year-ago period.
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