The Ford 2021 Bronco SUV is seen on the assembly line at Michigan Assembly Plant in Wayne, Michigan, U.S., June 14, 2021. REUTERS/Rebecca Cook
July 28, 2021
By Ben Klayman and Paul Lienert
DETROIT (Reuters) -Ford Motor Co on Wednesday boosted its 2021 profit forecast after reporting better-than-expected quarterly results.
The No. 2 U.S. automaker raised its expectation for full-year operating profit by about $3.5 billion, to between $9 billion and $10 billion.
Ford shares rose 2.6% to $14.22 in after-hours trade.
Ford estimated a roughly 30% increase in its global sales to dealers from the first to the second half of the year. However, it said it also expected higher commodity costs, investments in the company’s “Ford+” plan and lower earnings by Ford Credit, leading to lower operating profit in the second half.
The company reported an operating profit of $1.1 billion, and boosted its full-year forecast for adjusted earnings before interest and taxes to between $9 billion and $10 billion.
Net income dropped to $561 million from $1.1 billion in the year-ago quarter. Revenue climbed to $26.8 billion from $19.4 billion over the same period.
“We’re spring-loaded for growth,” Ford Chief Financial Officer John Lawler told reporters on a conference call. He cited a healthy bank of orders for recently introduced models such as the Mustang Mach-E and Bronco, and upcoming launches including the F-150 Lightning and Maverick compact pickup.
The company said it expected working capital to rise in the second half as vehicle production increases with better availability of semiconductors.
Ford estimated full-year adjusted free cash flow of between $4 billion and $5 billion.
(Reporting by Ben Klayman and Paul Lienert in Detroit; Editing by Leslie Adler and Richard Chang)
