• Send Us A Tip
  • Calling all Tech Writers
  • Advertise
Tuesday, July 15, 2025
  • Login
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
TechStory
No Result
View All Result
Home Business

Ford posts surprise profit despite scarcity of computer chips

by Rohit Yadav
July 29, 2021 - Updated On July 30, 2021
in Business, Markets, News, Tech, Trending
Reading Time: 3 mins read
0
Ford, Microsoft Funds Pivotal ; Massive $253Mn Raised
TwitterWhatsappLinkedin

Despite a global scarcity of computer chips that reduced manufacturing output in half, Ford Motor Co. turned a surprising second-quarter profit because to sky-high sales prices for its pickup trucks and SUVs.

You might also like

Nintendo Switch Piracy Hub Nsw2u Taken Down in FBI Crackdown

France Investigates X Over Algorithm Changes Amid Fears of Foreign Interference

Tesla Slashes Model Y Price by $20,000 in Canada as Tariffs and Sales Woes Mount

The Dearborn, Michigan-based business announced on Wednesday that it made $561 million in the first half of the year, owing primarily to cost savings and higher-than-expected vehicle pricing.

Image Credits: Nina Brooks

The chip shortfall and a fire at Japanese supplier Renesas, which makes many of the carmaker’s automotive-grade semiconductors, caused the automaker to report a second-quarter loss earlier this year.

However, eliminating one-time factors, Ford shocked investors by earning 13 cents per share. According to FactSet, this was considerably better than Wall Street projections of a 3-cent-per-share loss.

Revenue came in at $26.8 billion, which was also above than experts’ expectations of little over $23 billion.

Following the announcement of the earnings report after the closing of Wall Street’s regular session on Wednesday, Ford’s shares was up over 4% in extended trading.

Sales in U.S.

Ford increased its full-year pretax income estimate by roughly $3.5 billion to $9 billion to $10 billion. However, it warned that increased commodity costs and capital investments would counterbalance a 30 percent increase in second-half wholesale volume over the first half.

Ford’s company is “spring loaded” for a comeback when chip supplies stabilise, according to CEO Jim Farley. Orders for the electric Mustang Mach-E SUV and the new Bronco SUV are up.

Why the market loss?

Short supplies, according to Ford’s CFO Lawler, are to blame for the market share loss, as companies have been forced to close owing to a shortage of chips. He believes the firm has a strong chance of regaining that market share when the shortfall eases, and that the company would work hard to satisfy orders.

What to expect in next quarter?

According to Ford’s Chief Financial Officer, John Lawler, output would increase in the second part of the year. Due to new cars, he claims the company now has a bank of orders that is seven times greater than it was a year ago. For example, Ford has around 120,000 reservations for the new F-150 Lightning electric pickup vehicle, with roughly three-quarters of them being new Ford customers, he added.

In April, Ford estimated that the chip shortfall would reduce its second-quarter output by 50 percent, or 1.1 million vehicles globally. According to Lawler, the company lost roughly half of its global production, with plant output falling 700,000 cars short of Ford’s initial projections. However, he said that the business assigned available chips to its most profitable automobiles.

According to Lawler, the manufacturing line at the Renesas factory that was damaged by the fire should be able to produce more in the second part of the year, easing some of the chip shortfall. He expects the shortfall to go through this year and into the first half of 2022, according to him.

However, Lawler warned that rising raw material prices will shave $2 billion off the company’s pretax profit in the second half. Additionally, pretax profits at Ford’s credit business, which were $1.6 billion last quarter, are expected to decrease $1 billion from the first half as the value of cars returning from leases approaches typical levels.

High prices are expected to persist as long as there is a supply-demand mismatch, according to Lawler, though he expects prices to drop somewhat in the fourth quarter.

According to Lawler, the business has built and stored 60,000 to 70,000 automobiles without chips, which it plans to fix whenever the necessary components are available. According to him, Ford will boost checks to ensure that the vehicles are of the same quality as those that came off manufacturing lines.

Tags: FordFord earningsFord Q2Ford revenue
Tweet54SendShare15
Previous Post

Oregon Governor signs clean energy bill

Next Post

Turn phone off, then on to keep hackers away

Rohit Yadav

Hi! I'm Rohit, If you like reading about markets, technology and business, you've come to the right place. Catch me: [email protected]

Recommended For You

Nintendo Switch Piracy Hub Nsw2u Taken Down in FBI Crackdown

by Harikrishnan A
July 15, 2025
0
Nintendo Switch Piracy Hub Nsw2u Taken Down in FBI Crackdown

A well-known website catering to Nintendo Switch piracy, Nsw2u, has been permanently taken offline following an investigation led by the FBI. The site, widely used for downloading illegal...

Read more

France Investigates X Over Algorithm Changes Amid Fears of Foreign Interference

by Harikrishnan A
July 15, 2025
0
European Union Commences Investigation into Social Media Firm X for Alleged DSA Violations

French authorities have opened a formal investigation into the social media platform X—formerly known as Twitter—amid allegations that its algorithm may have been manipulated to support foreign interference...

Read more

Tesla Slashes Model Y Price by $20,000 in Canada as Tariffs and Sales Woes Mount

by Harikrishnan A
July 15, 2025
0
Tesla Owner Burns Down Car and House After Plugging Directly Into Power Line

Tesla is in crisis management mode in Canada, cutting the price of its Model Y SUV by a staggering CAD $20,000 in an urgent attempt to recover from...

Read more
Next Post
Turn phone off, then on to keep hackers away

Turn phone off, then on to keep hackers away

Please login to join discussion

Techstory

Tech and Business News from around the world. Follow along for latest in the world of Tech, AI, Crypto, EVs, Business Personalities and more.
reach us at [email protected]

Advertise With Us

Reach out at - [email protected]

BROWSE BY TAG

#Crypto #howto 2024 acquisition AI amazon Apple Artificial Intelligence bitcoin Business China cryptocurrency e-commerce electric vehicles Elon Musk Ethereum facebook funding Gaming Google India Instagram Investment ios iPhone IPO Market Markets Meta Microsoft News NFT samsung Social Media SpaceX startup startups tech technology Tesla TikTok trend trending twitter US

© 2024 Techstory.in

No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to

© 2024 Techstory.in

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?