Ford stocks after earnings when Chip Woes pulls on | MCUTimes

Ford stocks after earnings when Chip Woes pulls on

Ford Motor (F) reported a surprising second-quarter profit and raised guidance after the close Wednesday, though the global shortage of chips continues to create the industry. Ford makes steps.


The results will follow Tesla (TSLA) CEO Elon Musk said Monday that chipknas remain severe and are difficult to predict. And last week, chip giant Intel (INTC) warned shortage could extend to 2023.

Ford earnings

Discretion: Wall Street expects Ford to reduce net losses per Stock up 3 cents from 35 cents a year ago. Revenue is up 19% to $ 23.01 billion as the automaker drops the pandemic trough in the quarter last year, according to FactSet.

Results: 13 cents EPS on $ 24.13 billion in car revenue Adjusted EBIT
was $ 1.1 billion.

After warning in April that 50% of planned production in the second quarter would be lost, the company said on Wednesday that strong demand, lower incentives and a favorable mix of vehicles helped surpass its previous vision.

In Q2, Ford grew U.S. sales of new cars by 20% year-over-year. But Ford’s sales fell 20% year-on-year in 2019. Meanwhile, average transaction prices in Q2 rose $ 6,400 a year ago to $ 47,800 per year. Vehicle.

On June 30, Ford said the lack of automatic chip will again force it to cut production across several U.S. factories this month. Affected factories produce profitable pick-up trucks and SUVs, and some had returned to production after cuts earlier in the spring.

Ford had warned in April that chip shortages would force it to halve Q2 production and could dwell in 2022.

Outlook: Ford raised its 2021-adjusted EBIT outlook to $ 9 billion- $ 10 billion and its free cash flow outlook to $ 4 billion- $ 5 billion, citing strong orders and an improved chip supply. Volume is expected to increase by approx. 30% sequentially from the first to the second half of the year.

In April, Ford predicted 2021 adjusted EBIT of $ 5.5 billion- $ 6.5 billion, including a negative impact of $ 2.5 billion from chip shortages. It had expected to generate $ 500 million – $ 1.5 billion in adjusted free cash flow for the year, down from a previous view.

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Ford stock

Shares rose 2.3% late after closing 0.5% at 13.86 in 2000 stock market today. Ford shares have almost erased gains from a May breakout after 13.72 and there is nothing new point of purchase according to now MarketSmith chart analysis. That relative strength line for Ford stock has fallen from the May peak.

General Motors (GM) rose 0.9%, Tesla (TSLA) added 0.3% and Stellantis (STLA), formerly Fiat Chrysler, rose 0.6%.

While dealing with chip shortages, Ford continues a massive shift to electric vehicles. U.S. automaker No. 2 announced in May that it would spend more than $ 30 billion on electrification by 2025, up from $ 22 billion previously. Ford expects 40% of global sales to be fully electric by 2030.

However, Ford sees gas or diesel cars remain part of its commercial business.

In contrast, General Motors plans to become fully electric by 2035. GM recently upgraded its own investment in electric cars and electric cars (electric cars and autonomous vehicles) to $ 35 billion. Up from $ 27 billion.

Ford’s new Mustang Mach-E electric SUV, which is the key to its EV goals, is selling well. And a partnership with hot Chinese EV share Nio (NIO) enables Mach-E buyers in China to connect to Nio’s EV charging network in that country.

Two important new EVs weave. An all-electric Ford Transit commercial van is sold late in the year. The F-150 Lightning, Ford’s first all-electric pickup, will follow in mid-2022.

Find Aparna Narayanan on Twitter at @IBD_Aparna.


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