Ford posts surprise $3.26B 1Q profit; chip shortage looms

Ford posted a surprising $3.26 billion profit in the first quarter, but the company says a worsening global computer chip shortage could cut its production in half in the current quarter

DETROIT -- Ford Motor Co. posted a surprising $3.26 billion net profit in the first quarter on Wednesday, but the company said a worsening global computer chip shortage could cut its production in half in the current quarter. Excluding non-recurring items, the Dearborn, Michigan, automaker made 89 cents per share from January through March, trouncing Wall Street estimates of 22 cents per share. Quarterly revenue was $36.23 billion, beating analysts’ estimates of $36.13 billion, according to FactSet. Chief Financial Officer John Lawler attributed the large profit to Ford's years of restructuring to make the company leaner, as well as higher prices for its vehicles due to tight inventories. The second quarter should be the low point for the chip shortage, Lawler said, but he expects it to linger into the second half with a 10% production cut. That means Ford won't be able to make up for any lost production this year.