Ford overcame supply chain challenges to report higher vehicle sales and reaffirm its outlook for the year, but is “actively seeking” to offset costs as inflationary pressures mount.
The automaker reported revenue of $40.2 billion in the second quarter, a 50% increase over the same period last year, thanks to a 35% increase in wholesale shipments of its vehicles . Analysts had expected $34.3 billion, according to a survey by Refinitiv.
Net income rose about 19 percent from a year ago to $667 million, or 16 cents a share. The company’s earnings before interest and taxes were $3.7 billion, more than triple the prior-year figure, equivalent to adjusted earnings of 68 cents per share. Analysts expected 45 cents per share.
Ford said it expected demand and prices to continue strong for the rest of the year, predicting it would offset “about $4 billion against commodity prices.”
However, Ford is “actively looking for opportunities to compensate [cost] increases” as it forecasts inflationary pressures of $3 billion by 2022, up from the $1 billion it predicted a few months ago.
Still, that gave the company enough confidence to reaffirm its full-year Ebit guidance of $11.5 billion to $12.5 billion, which would represent an increase of 15 to 25 percent above last year’s pre-tax profit.
Ford shares rose 6.4 percent in after-hours trading.
The company was reported in recent weeks to be planning to cut thousands of jobs as it refocuses on electric vehicles. But CEO Jim Farley offered little when asked about the issue during the analyst call.
“We have absolutely too many people in certain places, without a doubt,” he said Wednesday. “We have skills that no longer work” as the company reshapes itself around electric vehicles.