Ford raises full-year profit outlook after stronger-than expected quarter

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The Ford 2021 Bronco SUV is seen on the assembly line at Michigan Assembly Plant
The Ford 2021 Bronco SUV is seen on the assembly line at Michigan Assembly Plant in Wayne, Michigan, U.S., June 14, 2021. REUTERS/Rebecca Cook

July 28, 2021

DETROIT (Reuters) -Ford Motor Co on Wednesday boosted its profit forecast for the year after reporting better-than-expected quarterly results.

The No. 2 U.S. automaker raised its expectation for full-year operating profit by about $3.5 billion, to between $9 billion and $10 billion.

Ford estimated a roughly 30% increase in its vehicle volume from the first to the second half of the year. However, it said it also expected higher commodity costs, investments in the company’s “Ford+” plan and lower earnings by Ford Credit, leading to lower operating profit in the second half.

The company reported an operating profit of $1.1 billion, and boosted its full-year forecast for adjusted earnings before interest and taxes to between $9 billion and $10 billion.

Net income dropped to $561 million from $1.1 billion in the year-ago quarter.

Revenue climbed to $26.8 billion from $19.4 billion over the same period.

(Reporting by Ben Klayman and Paul Lienert in Detroit; Editing by Leslie Adler and Richard Chang)