Ford posts surprise quarterly profit on rising prices

[NEW YORK] Ford reported a surprise profit as strong vehicle pricing offset the hit from the semiconductor shortage, sending the automaker's shares higher on Wednesday.

Robust demand for vehicles in the reopening economy drove profits to US$1.1 billion in the latest three months, about double the level seen in the same quarter of 2020, Ford said in its earnings report.

Revenues jumped 38 per cent to US$26.8 billion.

Analysts had expected a second-quarter loss based on Ford's forecast in April.

But Ford said it was able to eliminate dealer incentives, and revenue per unit jumped 14 per cent compared with the same quarter of last year.

The automaker also raised some key forecasts for the year, saying it expects volume to increase in the second half of 2021.

The company cited strong demand for its new Mustang Mach-E all-electric sport utility vehicle, and brisk orders for the F-150 Lightning, the first all-electric version of the popular pickup.

Ford shares rose 3.9 per cent to $14.40 in after hours trading.

AFP