Ford reported lower-than-expected fourth-quarter earnings on Thursday amid supply chain problems, although rising vehicle prices boosted U.S. results.
The profit from Ford translated into $ 12.3 billion in the fourth quarter. This number received a big boost from an accounting profit of $ 8.2 billion from the company’s investment in electric vehicle manufacturer Rivian.
Although one-off items were excluded, earnings per share analysts were disappointed.
Revenue rose 5% to $ 37.7 billion, 4.7% higher than last year’s levels.
The carmaker predicted that 2022’s operating profit would be between $ 11.5 billion and $ 12.5 billion, an increase of 15% to 25% from 2021.
U.S. carmaker executives noted that some of the company’s suppliers could not deliver items due to the outbreaks of Omicron, the contagious coronavirus variant.
Profit margins in the fourth quarter of 2021 were also affected by high commodity costs, as well as high spending on fuel and transportation, according to executives.
Fordwhich was also forced to cut production in light of an industry-wide shortage of semiconductors, handled the situation by directing production to its most profitable vehicles.
This strategy boosted sales in North America, where the company reported higher revenue and operating profit.
“Our team has done a fantastic job of working with partners to maximize component availability,” said CFO John Lawler. “We allocate those volumes to new vehicles on demand,” he said.
Ford he predicts a 10-15% increase in his wholesale output, which implies an improved supply chain outlook, although he noted that “continuous volatility in the supply of key components.”
The actions of Ford They fell 3.8% to $ 19.13 in after-hours trading in New York on Thursday.
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Reference-www.eleconomista.com.mx