- Ford (NYSE:F) -3.4% post-market after easily beating Q1 earnings estimates but lowering its full-year EBIT guidance due to the semiconductor shortage plaguing the auto industry.
- Ford says it expects to lose ~50% of planned Q2 production due to the shortage, up from 17% in Q1, but the problem should bottom out during the current quarter, with improvement through the rest of the year.
- The company anticipates the flow of semiconductors from its Japanese supplier to resume by the end of Q2, but says the broader global semiconductor shortage may not be fully resolved until 2022.
- Ford assumes that it will lose 10% of planned H2 production, or ~1.1M units of production this year to the semiconductor shortage.
- GM -2.1% after-hours; the company's Q1 earnings report is scheduled for May 5.
- For the full year, Ford cuts its forecast for adjusted EBIT $5.5B-$6.5B from $8B-$9B previously, well below $6.81B analyst consensus estimate, and forecasts the semiconductor shortage will cost $2.5B.
- Q1 automotive revenues rose 7% Y/Y to $33.6B; North America revenues rose %% to $23B, helped by strong consumer demand for the Mustang Mach-E, the new F-150 and Bronco Sport, as well as tight vehicle inventories related to chip-related production declines.
- Q1 adjusted EBIT was a record $4.8B and included a non-cash gain of $902M on the Rivian investment, also boosted by strong demand for the company's new products, tight vehicle inventories and favorable Y/Y cost performance.