DETROIT (AP) — Ford Motor Co.'s net income rose 19% in the second quarter as the company pulled together enough computer chips to boost factory output and sales.
The Dearborn, Michigan, automaker said Wednesday it made $667 million from April through June, compared with $561 million a year earlier.
The company stuck with its full-year outlook for pretax earnings of $11.5 billion to $12.5 billion and it still expects 10% to 15% growth in vehicle sales to dealers for the full year.
But Chief Financial Officer John Lawler said the automaker is modeling several scenarios in case the economy slips into a recession. He says Ford is better prepared for a downturn than in the past thanks to lower expenses and a stronger model lineup.
It's also in the midst of a major transformation of the business that will include white-collar job cuts, although he wouldn't give any numbers. Ford will cut in areas with old skills and add where new skills are needed for electric and connected vehicles, he said.
Lawler said the company's factories are still slowed by the global shortage of computer chips.
“Given the constraints that we have, demand is still higher than we can supply,” he said.
From April through June, adjusted earnings per share were 68 cents, beating Wall Street estimates of 45 cents, according to FactSet.
Ford's stock jumped almost 6% in after-market trading following the earnings report.
Revenue was $40.19 billion, also beating analyst estimates of $36.87 billion.
Ford said in a statement that it expects to keep getting strong prices for its vehicles for the rest of the year, which will help offset about $4 billion in added costs from commodities.
Sales in the U.S., Ford's most profitable market, rose just under 2% for the quarter. That boosted profits when coupled with strong demand and high prices for trucks and SUVs.
Lawler said Ford's sale prices rose about 6% last quarter from the prior year, and the company is not seeing any falloff in consumer demand. With average U.S. vehicle selling prices around $45,000, Lawler said there could be some moderation in prices during the second half of the year.