U.S. automaker Ford raised some of its full-year guidance on Wednesday, after offsetting semiconductor issues with price hikes in the second quarter on strong demand for its vehicles.
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The group had warned that it expected to see its production decrease by about 50% over the period because of the lack of microchips affecting the entire sector, which would have led to a loss. Ford has had to temporarily close certain factories for lack of these small components which have become essential in the production of automobiles. But at the same time, the company has taken advantage of strong demand for its cars, pickups and trucks to "
optimize revenue and profit
" by offering fewer promotions and focusing on the most profitable vehicles. Their average price in North America increased 14% year on year.
These measures enabled it to generate a net profit of 561 million dollars.
On a per share basis and excluding special items, the preferred measure of Wall Street investors, profit rose to 13 cents as analysts expected a small loss.
Rise in US consumption
Group boss Jim Farley said on a conference call that he is currently seeing "
signs of improvement in the flow of semiconductors
."
"
The situation remains fluid, in particular because of the difficult recovery
" of one of the main suppliers of Ford, the Japanese group Renesas affected by a fire in March, he added.
The problem could persist "
until the first half of 2022,
" said management.
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Many Americans, with wallets inflated by government aid and savings during the pandemic, are now looking to take advantage of low interest rates to afford a new car.
Those who already own a vehicle are all the more encouraged to do so since resale prices are currently at very high levels.
Ford's revenue increased 38% from April to June compared to the same period in 2020, when the spread of Covid-19 led to the temporary closure of many factories, to reach 26.75 billion dollars.
For the year as a whole, the group has raised its forecast for adjusted profit before interest and taxes by around 3.5 billion dollars: it is now expected between 9 and 10 billion.
The success of the new models
Higher sales volumes should more than offset higher raw material costs or lower profits in Ford's financial arm, says the automaker. Reservations for vehicles were seven times higher at the end of June than at the same date last year. "
With the current and expected additional demand for some models including the Bronco SUV and, later, the Maverick and F-150 Lightning pickups
," the company "
is poised to rebound when semiconductor supplies stabilize.
" , assured Jim Farley.
The group's new electric models are particularly popular, whether it is the Mustang Mach-E already on the market, or the F150 Lightning, which has already received 120,000 pre-orders since its presentation in May, said the leader. The group's share took 3.5% in electronic exchanges following the close of the New York Stock Exchange.