2023-07-27 22:52:00
Ford is expecting surprisingly strong sales and is therefore raising its profit forecast for the full year. The US automaker announced on Thursday that improvements in the supply chain could produce more pickups and SUVs than originally planned. This can be used to meet the strong demand. The company now expects pre-tax profit to be between $11 billion and $12 billion, up from $9 billion to $11 billion previously. Ford shares rose 1 percent in after-hours trading.
Better deals and financing options have helped more buyers opt for new vehicles over used vehicles and leasing options, it said. Adjusted earnings before interest and taxes rose slightly to $3.8 billion. The adjusted profit margin (EBIT) fell from 9.3 to 8.4 percent. However, sales rose from 40.2 to 45 billion dollars.
Ford acknowledged that it would take longer to ramp up EV production to 600,000 vehicles a year. So far, this goal should have been achieved by the end of the year. Now it should be successful in the coming year. The US company expects its Model e electric vehicle division to make a loss of $4.5 billion this year. So far, a minus of three billion dollars had been forecast.
In the battle with the US electric car manufacturer Tesla for market share, Ford recently reduced the prices for its F-150 Lightning electric truck again, sometimes sharply. The group justified this with economies of scale in sales and reduced costs for the batteries. Ford hopes this will boost sales. In the quarter to the end of June, e-car sales fell by 2.8 percent.
More: Ford is lowering the prices for its electric top model F-150 Lightning
#Ford #raises #profit #forecast #SUVs #pickup #trucks #demand