US automaker Ford estimates its global sales to be up by 30pc in H2 as compared to H1.
The company lost the production of about 700,000 units in Q2 but remained optimistic due to a steady bank of orders for recently launched models like the Mustang Mach-E, Bronco, and upcoming launches like F-150 Lightning and Maverick compact pickup.
The company has also boosted its 2021 profit forecast after the company’s Q2 (April-June) results exceeded expectations, according to reports.
Despite the ongoing global chip shortage, higher prices on models like large pickups and SUVs boosted the company’s revenue and operating profit in its largest market in North America.
Like other carmakers, the shortage of semiconductors and the consequent delivery delays have prompted Ford to emphasize production and sales of products that carry a higher margin. The move enabled the automaker to boost its revenue by nearly $5,000 per vehicle in the quarter while adding $1.5bn to its operating profit.
Ford boosted its yearly operating profit guidance by about $3.5bn to between $9bn and $10bn.
Increased commodity costs, investments in the company’s “Ford+” plan, and a decline in earnings by Ford Credit could affect the company’s operating profit in H2, said the automaker.
Ford Motors’ net income declined to $561mn from $1.1bn in the year-ago quarter, and revenue jumped to $26.8bn from $14.9bn in the same period.
The company’s automotive revenue in the US jumped by 37pc to $15bn, while in Europe, revenue jumped by 55pc to $5.6bn. In China, however, revenues fell 31pc to $600mn.
Ford incurred operating losses in most major markets except North America, where earnings before interest and taxes were $194mn.