NEW YORK: Ford shares zoomed higher Wednesday as the US auto giant reported increased second-quarter profits on a surge in auto sales that more than offset the hit from higher costs.
The Michigan company had already disclosed a jump in second-quarter US auto sales that bucked the declines reported at other carmakers amid the ongoing semiconductor shortage.
But on Wednesday Ford also confirmed its 2022 profit targets, pointing to continued strong vehicle pricing as dealerships contend with tight product inventories.
Profits for the quarter ending June 30 rose 19 percent to $667 million on a 50 percent surge in revenues to $40.2 billion.
Vehicle demand “is – and is expected to remain – strong,” said Chief Financial Officer John Lawler, while adding that the pricing conditions remained “dynamic.”
Ford said it continued to face cost pressures, with $4 billion in headwinds in 2022 related to higher prices for metals and other commodities.
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The company also raised its estimate for “other” inflationary pressures to $3 billion for the year, up $1 billion from the prior forecast. Companies have been contending with broad-based inflation on everything from salaries to shipping.
Shares jumped 6.5 percent to $14.05 in after-hours trading.
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