© Reuters. FILE PHOTO: Jim Farley, CEO of Ford Motor Co., walks to speak at a press conference at the Rouge Complex in Dearborn, Michigan
By Ben Klayman and Paul Lienert
DETROIT (Reuters) – Ford Motor (NYSE 🙂 Co said on Wednesday it expects a global semiconductor shortage to ease this summer but may not be fully resolved until 2022, the automaker automobile having reported strong earnings in the first quarter, but said the shortage could decrease. second quarter production by half.
Ford said the ongoing chip shortage will cost it around $ 2.5 billion and around 1.1 million units of production lost in 2021.
The No.2 U.S. automaker largely beat Wall Street’s earnings estimate for the quarter, gaining 81 cents per share, down from 21 cents compared to consensus, according to data from Refinitiv IBES. In the first quarter of last year, the company lost 50 cents per share.
Ford shares were down 2.9% in after-hours trading on Wednesday.
Ford chief executive Jim Farley told analysts: “We still have a long way to go. The semiconductor shortage and impact on production will get worse before it gets better. In fact , we think our second quarter will be the low point for this year. “
CFO John Lawler said Ford’s outlook was largely driven by a factory fire suffered by Japanese chipmaker Renesas. Renesas’ chip flow is expected to be reestablished in July, but the global automotive semiconductor shortage may not be fully resolved until next year, Lawler said.
Ford said its net income of $ 3.3 billion was the best since 2011 and adjusted pre-tax profit was a record $ 4.8 billion, including a non-cash gain of $ 900 million on its investment in Rivian, the electric vehicle start-up. Ford lost $ 2.0 billion in the first quarter of 2020.
The company said the chip shortage would cut annual profit before interest and taxes from $ 5.5 billion to $ 6.5 billion.
In February, CFO Lawler said the company was on track to earn $ 8 billion to $ 9 billion in adjusted EBIT.
Revenue for the quarter increased to $ 36.2 billion, from $ 34.3 billion a year earlier.
Ford was able to offset some of the impact of lost production during the quarter of this year by increasing the average transaction price per vehicle sold to nearly $ 48,000, from just over $ 44,000 ago. is one year old, according to research firm Edmunds.com.
Ford dealers were able to get higher prices due to the shortage of popular models, like the top-selling F-150 pickup.
Lawler said Ford may in the future stick to leaner inventories of F-150s and other models “because it’s a better way to run our business.”
Overseas, Ford posted revenues in Europe up 13% to $ 7.1 billion and pre-tax profit of $ 341 million, reversing a loss from a year ago.
Revenue climbed 39% to $ 800 million in China, where Ford reduced its loss to $ 15 million, from a loss of $ 241 million a year earlier.
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