Ford Motor co. posted $3.3 billion in net income-its highest quarterly results in years-but warned the financial toll from the on-going global computer-chip shortage will potentially worsen.
Ford’s bottom line, which was powered by solid pricing in North America, reversed a $2 billion loss from a year earlier, when the Covid-19 pandemic froze North American production.
The company posted pretax first-quarter profit excluding one-time items of $4.8 billion, or 89 cents a share, easily surpassing the 22 cent average estimate of analysts surveyed by FactSet. The result included a $900 million non cash gain from Ford’s investment in electric-truck maker Rivian Automotive LLC.
Revenue increased 6% to $36.2 billion. Ford stated that the chip shortage will cut $2.5 billion from adjusted pre tax revenue this year, the high range of the $1 billion-to-$2.5-billion estimate it provided in February. The company stated that the lack of semiconductors will force it to cut second quarter production in half, but it expects the situation to improve after June.