Ford Motor Company (NYSE:F) increased its forecast for full-year profit, but said the shortage of computer chips remains a challenge.
Problems with semiconductor availability led to a 5% drop in the US automaker’s revenue to US$35.7bn in the third quarter, while adjusted profit before interest and tax (EBIT) fell by almost 17% to US$3bn and net income declined to US$1.8bn from US$2.4bn.
The company noted in its earnings release that its revenue, net income and EBIT improved were all sharply higher from the second to the third quarter, driven by significant increases in computer chip availability and wholesale vehicle shipments.
But the impact of the chip shortage is expected to continue into next year and possibly into 2023. The Financial Times cited Ford chief financial officer John Lawler as saying that while the automaker expects “the scope and severity” of the shortage to diminish, “the constraints on the chips will remain fluid through 2022, and they could extend into 2023”.
Ford raised its guidance for full-year adjusted EBIT to between US$10.5bn-US$11.5bn.
Cash stood at US$31.5bn at the end of September, with total liquidity amounting to US$47.4bn.
The group said it expects cash flow over current planning period to be more than sufficient to fund growth priorities.
It also announced plans to resume dividend payments in the fourth quarter of 2021.
Commenting on Ford's plan for growth and value creation, president and chief executive Jim Farley said: “This is the most exciting Ford lineup I’ve seen, but what matters is that customers love our new products and services – and we’re just getting started.
“The trajectory of our business gives us huge confidence in Ford+, and we’re obsessively turning the plan’s promise into reality.”