By Dhirendra Tripathi
Investing.com – Ford (NYSE:F) shares were flat in Thursday’s trading after the automaker said its second quarter adjusted earnings before interest and taxes will exceed its own expectations and be slightly better than a year ago.
The company had reported a negative $1.9 billion in adjusted EBIT in the second quarter of last fiscal year. Ford will disclose its performance for the ongoing quarter on July 28.
Company President and CEO Jim Farley is participating this afternoon in Deutsche Bank’s Global Auto Industry Conference, and the company issued this statement ahead of that.
Net income for the second quarter of 2021 is expected to be substantially lower than a year ago, when results included a $3.5 billion gain on Ford’s investment in Argo AI.
Farley will tell conference attendees that Ford is seeing improvement in its automotive business since providing full-year operating guidance on April 28, even as uncertainty about supplies of semiconductors lingers, a company note said.
The improvement in automotive is being driven by lower-than-anticipated costs and favorable market factors. Additionally, higher vehicle auction values are benefitting Ford Credit.
The carmaker anticipates full-year 2021 adjusted EBIT to be between $5.5 billion and $6.5 billion, including an adverse effect of about $2.5 billion from the semiconductor issue.