Profits very well, semiconductor emergency much less well. According to Ford, the latter could fade in the summer, but could be the classic thorn in the side until 2022. Meanwhile, the lack of chips could even halve production in the second quarter. Ford said the damage could amount to 2.5 billion and about 1.1 million units lost in 2021, with full-year earnings before interest and taxes reduced to 5.5-6.5 billion. However, first quarter profit of $ 3.3 billion was the best since 2011, and adjusted pre-tax profit was a record $ 4.8 billion, including a $ 900 million gain on its investment in Rivian, the electric pickup and suv start-up. Wall Street earnings estimate for the quarter beaten, with 81 cents per share compared to 21 cents in the consensus. Revenues for the quarter increased to 36.2 billion from 34.3 billion a year earlier. The Blue Oval had lost 2 billion in the first quarter of 2020, equal to 50 cents per share.
Ford CEO Jim Farley told analysts, “The shortage of semiconductors and the impact on manufacturing will get worse before they get better. In fact, we believe our second quarter will be the worst for this year ». CFO John Lawler said Ford’s prospects were largely oriented by the fire at a factory of Japanese chip maker Renesas. Renesas’ chip flow is expected to be restored in July, but the global automotive semiconductor shortage may not be fully resolved until next year, Lawler said.
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In February, CFO Lawler said Ford was on track to earn $ 8 to $ 9 billion in adjusted EBIT. The U.S. manufacturer was able to offset some of the impact of the loss of production in the quarter of this year by raising the average price per vehicle sold to nearly 48,000, up from just over $ 44,000 a year ago, according to the research firm. Edmunds.com. Dealers have leveraged the shortage of popular models brought about by the chip crisis, including the best-selling F-150 pickup. Lawler said Ford could be left with lighter stocks of F-150s and other models in the future “because it’s a better way to run our business.”
Abroad, Ford reported revenues in Europe up 13% to $ 7.1 billion and $ 341 million in pre-tax profit, compared with a year-ago loss. Revenue increased 39% to $ 800 million in China, where Ford cut its loss to $ 15 million, compared with a loss of $ 241 million a year earlier.
The stock loses more than 2% in premarket.