Ford CEO Jim Farley takes off his mask at the Ford Built for America event at Fords Dearborn Truck Plant on September 17, 2020 in Dearborn, Michigan.
Nic Antaya | Getty Images
DETROIT – Ford Motor beat Wall Street’s expectations for the first quarter and raised its earnings guidance for the year despite an ongoing global chip shortage depleting vehicle inventories and causing the company to shutter some of its factories.
Here’s how Ford did compared with what Wall Street expected based on average estimates compiled by Refinitiv.
- Adjusted earnings: 89 cents versus an expected 21 cents
- Automotive revenue: $33.55 billion versus $32.23 billion
Ford previously said it expected the parts problem could lower its earnings by $1 billion to $2.5 billion in 2021. Without releasing any new guidance, the company last month said it “will provide an update on the financial impact of the semiconductor shortage” when it reports its first-quarter earnings.
On a more positive note, the lower inventories and lack of production have led to higher profits per vehicle for automakers.
Wall Street also is watching for any additional business changes by Ford CEO Jim Farley, who replaced Jim Hackett effective Oct. 1, and any updates on the company’s electric vehicle plans.
Ford announced Tuesday that it will “eventually” manufacture its own batteries and battery cells. However, the company declined to discuss a timeline to do so. In November, Farley said Ford was “absolutely” interested in following Tesla and General Motors in producing its own batteries for electric vehicles in the U.S.
Shares of Ford are up nearly 90% since Farley became CEO, including more than 40% in 2021. The company’s market cap is more than $48 billion.
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