Ford reported better-than-expected results Wednesday, citing a “significant” improvement in semiconductor availability in the latest quarter and announcing it would restore dividends.
The Detroit giant, which has joined other major automakers in cutting back production amid a global chip shortage, saw lower revenues tied to a drop in car sales compared with the year-ago period.
But Ford said semiconductor availability in the latest three months was “markedly improved” from the prior quarter, even as supply “remains a challenge.”
Profits fell 23 percent to $1.8 billion on a five percent drop in revenues to $35.7 billion, the automaker said in a statement.
Ford lifted its full-year operating profit forecast and said its board voted to reinstate a dividend. Investors will get 10 cents a share on December 1.
Like General Motors and other rivals, Ford is aggressively ramping up investments in electric vehicles. The company has unveiled an all-electric version of its popular F-150 pickup truck and plans a new F-Series truck plant in Tennessee.
The company’s share price rose 3.7 percent to $16.09 in after-hours trading.
GM Q3 profit drops amid semiconductor crunch
© 2021 AFP
Citation:
Ford lifts forecast, citing better semiconductor supply (2021, October 27)
retrieved 27 October 2021
from https://techxplore.com/news/2021-10-ford-citing-semiconductor.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no
part may be reproduced without the written permission. The content is provided for information purposes only.
For all the latest Technology News Click Here
For the latest news and updates, follow us on Google News.
