Ford shares surged higher on Wednesday as the US auto giant reported higher second-quarter earnings on a surge in auto sales that more than offset the impact of higher costs.
The Michigan-based company earlier announced a second-quarter increase in US auto sales, which offset declines reported by other automakers amid ongoing semiconductor shortages.
But on Wednesday, Ford also confirmed its profit targets for 2022 and pointed to continued strong vehicle prices as dealers struggle with tight product inventories.
Earnings for the quarter ended June 30 rose 19 percent to $667 million on revenue up 50 percent to $40.2 billion.
Vehicle demand “is – and is expected to remain so – strong,” Chief Financial Officer John Lawler said, while adding that pricing conditions remained “dynamic.”
Ford said it remains under cost pressures, with headwinds of $4 billion in 2022 related to higher metals and other commodity prices.
The company also raised its estimate for “other” inflationary pressures to $3 billion for the year, up $1 billion from the previous forecast. Businesses are struggling with inflation across the board, from salaries to shipping.
Shares rose 6.5 percent in after-hours trading to $14.05.
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