Ford posts surprise $561 million 2Q profit with factory output better than expected

Ford Motor Co. posted a surprise second-quarter profit of $561 million mainly because of better-than-expected factory production despite a global shortage of computer chips.

The high sales prices for its pickup trucks and SUVs also helped.

The Dearborn, Michigan, company warned earlier in the year about the effects of a global chip shortage exacerbated by a fire at the Japanese supplier of automotive-grade chips, Renesas.

In April, Ford predicted that the chip shortage would cut its second-quarter global production by 50 percent, or by 1.1 million vehicles, causing a quarterly loss.

The company earned 13 cents per share excluding one-time items, far better than Wall Street expectations of a 3-cent-per-share loss.

The carmaker also posted revenue of $26.8 billion, way above analysts' forecasts of over $23 billion.

Ford raised its full-year pretax income guidance by $3.5 billion to around $10 billion.

However, it noted that higher commodity prices and capital investments would offset sales volume expected to rise by about 30 percent in the second half over the first half of this year.

With orders up for its Mustang Mach-E SUV and the new Bronco SUV, Ford is poised for a rebound when chip supplies stabilize, says its CEO Jim Farley.

Ford's average US vehicle sales price, led by the F-Series pickup, jumped 6.3 percent to $47,961 for the quarter.

The US remains Ford's most profitable market, with sales rising nearly 10 percent on-year even after losing over a quarter of its market share, which fell to 10.6 percent.