NEW YORK: Ford shares zoomed higher Wednesday as the US auto giant reported increased second-quarter profits on a surge in auto sales that more than offset the hit from higher costs.
The Michigan company had already disclosed a jump in second-quarter US auto sales that bucked the declines reported at other carmakers amid the ongoing semiconductor shortage, reports AFP.
Profits for the quarter ending June 30 rose 19 percent to $667 million on a 50 percent surge in revenues to $40.2 billion.
Vehicle demand "is -- and is expected to remain -- strong," said Chief Financial Officer John Lawler, while adding that the pricing conditions remained "dynamic."
Ford said it continued to face cost pressures, with $4 billion in headwinds in 2022 related to higher prices for metals and other commodities.
The company also raised its estimate for "other" inflationary pressures to $3 billion for the year, up $1 billion from the prior forecast.
Companies have been contending with broad-based inflation on everything from salaries to shipping.