Jul 29, 2021 (IAM Newswire via COMTEX) -- On Wednesday and week before its Detroit-rival General Motors (NYS:GM) scheduled its second quarter earnings results, Ford Motors (NYS:F) raised its outlook for the year after delivering a surprising second quarter profit. Upon the news, its stock was up by about 4% in after-hours trading.
Due to the ongoing global shortage of semiconductor chips which continues to disrupt production, revenue of $24.13 billion slightly missed expectations. Ford revealed it lost production of about 700,000 vehicles during the quarter. Net profit was $1.1 billion and an adjusted pretax loss came to $1.9 billion. Adjusted result amounted to 13 cents per share, compared to the expected loss of 3 cents a share.
The EV front
Ford made a clear statement that it is "spring loaded" for growth during the second half of the year and beyond due to strong demand, including reservations, for newly launched and upcoming vehicles. Its recent vehicle launches have ranged from well-accepted electric Mustang Mach-E crossover and redesigned F-150 to two new Bronco models, including the "big Bronco" SUV. It also has unveiled it received more than 120,000 reservations for an all-electric version of its F-150 pickup, the Lightning, since its debut in May, 75% of which or 90,000, are new to Ford. Ford also started receiving reservations for its new small pickup, the Maverick.
Electric pickup peers
Ford still has a bit of catching up to do to catch up to reservations for Tesla's (NAS:TSLA) Cybertruck which received well over 500,000 orders back in September, less than a year after its debut. Deliveries of Ford's Lightning are schedules for spring of 2022. The majestic Atlis XT electric pickup is scheduled to debut on the flourishing pickup truck market a bit earlier in 2022 whereas the luxurious Hercules' Alpha is expected by the end of next year, both of which will be powered by Worksport Ltd's (NAS:WKSP) TerraVis revolutionary solar fusion for power generation and storage.
Due to demand for profitable new vehicles such as the Ford Bronco SUV expected to boost its performance, Ford raised its full-year adjusted earnings before taxes about $3.5 billion, to a range between $9 billion and $10 billion. From the first to the second half of the year, sales volume is expected to increase by about 30% due to improvement in market factors. Despite the increase, the second half of the year is expected to be weaker than the first operating profit-wise due to commodity costs, lower earnings from Ford Credit and other factors such as higher warranty costs which will drag down its results. Ford declined to provide the expected impact of semiconductor chip shortage on its full year earnings but the CEO, Jim Farley, described the situation as "fluid" despite an anticipated increase in supply during the second half of 2021.
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