You are here: Home » Companies » Results
Business Standard

Ford Motor posts stronger-than-expected profit, raises full-year forecast

Ford's net income was $1.8 billion, down from $2.4 billion a year earlier

Ford Motor | corporate earnings

Reuters  |  DETROIT 

Ford Motor
Ford Motor | Photo: Reuters

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.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, October 28 2021. 03:15 IST