Ford earnings: Q2 net income rises 19% to $667 million as revenue jumps 50%

“We’re relocating with intent and velocity into the most promising period for progress in Ford’s background — to innovate and supply great products and related services, increase top quality and decreased fees,” CEO Jim Farley said in a statement. “We’re offering shoppers wonderful activities and benefit, improving our profitability and producing Ford the subsequent-era transportation chief.”

Ford’s web revenue in the quarter was dragged down by a $2.4 billion reduction from its investment decision in Rivian Automotive Inc.

Chip shortage easing

In a indication the semiconductor shortage may well be easing, CFO John Lawler claimed Ford has about 18,000 automobiles ready for chips or relevant components. That’s down from 53,000 the previous quarter.

Ford’s gains had been driven, as standard, by the automaker’s general performance in North The united states, exactly where it manufactured $3.3 billion, up noticeably from the $192 million it earned in the second quarter of 2021. It gained $104 million in South The us, $10 million in Europe and $60 million in its intercontinental markets team.

Ford lost $121 million all through the 2nd quarter in China, which the automaker largely blamed on reduce motor vehicle shipments because of to pandemic limits.

Ford reaffirmed its whole-12 months advice of $11.5 billion to $12.5 billion in adjusted EBIT, which would be 15 to 25 % much more than it attained in 2021. Ford expects creation volumes to enhance 10 to 15 percent in excess of 2021 ranges.

Dividend hike

Executives also introduced the organization would enhance its quarterly dividend by 50 p.c — to 15 cents for every share — starting off this quarter. The hike returns the dividend to pre-pandemic ranges.

Ford executives on Wednesday declined remark on a recent Bloomberg report that it designs to minimize up to 8,000 salaried positions in the around upcoming, despite the fact that Farley reiterated his stance that Ford has much too many men and women.

“We have expertise that really do not do the job any additional and we have work opportunities that need to improve,” he claimed. “In the earlier, generally indiscriminately, we’d take the cost out. That is not what’s occurring at Ford now. This is a various sort of adjust, where we’re reshaping the firm.”

Inspite of reaffirming its comprehensive-yr outlook, Lawler said Ford now expects $3 billion in “inflationary pressures” this 12 months, up from the $1 billion increase it forecast past quarter. Ford also expects a $4 billion enhance in commodity selling prices, which could offset favorable pricing.

However, Lawler claimed Ford anticipates powerful need by way of the remainder of the yr.

“The industry is nevertheless working more powerful than what we can supply,” he reported. “At this point, we have not noticed it gradual down.”