Ford's fourth-quarter profits hit by supply chain issues
Ford announced its fourth-quarter results that stood low in the barometer of the automaker's expectation. The automaker informed the not-so-pleased sales figure is due to the supply chain issues while company executives shared some of its suppliers had been unable to deliver items due to outbreaks of the Omicron variant of Covid-19.
Ford's profits for the final quarter of 2021 took a hit due to an increase in the prices of commodities such as aluminium, steel, precious metals and resins along with rising expenses related to fuel and shipping, added executives from the brand. The US-based automaker has also been forced to cut its production due to the ongoing global semiconductor shortage and stayed afloat by producing its most profitable vehicles.
Chief Financial Officer John Lawler said the team worked well with the partners to maximise the availability of components. “We allocated those volumes to in-demand new vehicles," added Lawler. However, he mentioned he sees production improving this year, with a slow start in the first quarter. The automaker is expecting sales to dealers to increase 10 per cent to 15 per cent over the 3.9 million last year.
Ford's profit stood at $12.3 billion in the fourth quarter and that figure got a huge boost from an $8.2 billion accounting gain for the company's investment in electric vehicle maker Rivian. The company said it expects full-year pretax profits this year to rise 15 per cent to 25 per cent compared to 2021, to a range of $11.5 billion to $12.5 billion.
(With inputs from agencies)