Ford Motor Corporation's net income increased by 19% in the second quarter as a result of the company assembling enough computer chips to increase production and sales in its factories.
DOWNTOWN (AP) — Ford Motor Corporation's net income increased by 19% in the second quarter as a result of the company assembling enough computer chips to increase production and sales in its factories.
The Dearborn, Michigan-based manufacturer reported Wednesday that its April through June revenue was $667 million, up from $561 million in the same period last year.
The business maintained its full-year forecast for pretax earnings of $11.5 billion to $12.5 billion and continued to anticipate a 10% to 15% increase in car sales to dealers. Additionally, beginning in the third quarter, it increased its dividend from 10 cents per share to 15 cents per share, returning it to its pre-pandemic level.
However, according to Chief Financial Officer John Lawler, the manufacturer is planning for several possibilities in case the economy enters a recession. Because of lower costs and a more robust model selection, he claims Ford is more prepared for a downturn than in the past.
Additionally, the company is undergoing a significant transformation that will result in the loss of white-collar jobs. CEO Jim Farley said the company is too complex and its costs aren't competitive on Wednesday. In certain departments, there is also too many personnel.
We still have outdated abilities, he declared. "We need to alter our careers."
He claimed that the company's internal-combustion vehicle lineup has too many variations. According to Farley, the company intends to build more models using the same electric vehicle substructure while investing cash in areas that directly impact customers, including software, digital displays, and autonomous driving systems.
Workflow analysis will determine which areas will be cut, according to Farley.
Ford has reorganized into three business divisions: one for internal combustion vehicles, one for commercial vehicles, and one for electric vehicles.
The global shortage of computer chips, which Lawler said is currently slowing the company's manufacturing, is something he expects to get better in the fourth quarter.
Given our limitations, the demand is still more than our capacity, he declared.
Additionally, Ford is dealing with rising prices for raw materials and general inflation, which Lawler anticipates will subside in the second half.
The corporation is preparing for macroeconomic issues, with energy constraints in Europe as a result of Russia restricting natural gas supplies as the next crisis. He claimed that Ford had 550 parts-supply businesses in high-risk regions of Europe, with 130 of them shipping to North America.
It's always a new day, but I think we're well-prepared for the things we can anticipate, he said.
In the trade after the market closed, Ford's shares increased 6.3%.
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