Ford Q2 earnings surpass expectations, raises shareholder dividend 50%

Despite trouble with the global supply chain, Ford’s adjusted earnings has tripled from a year ago to $3.7 billion as it increases deliveries. After the news was released, company shares were up 6%. Ford is still suffering from high prices due to inflation. After accounting for a $2.4 billion fall in the value of its stake in electric vehicle startup Rivian Automotive, Ford’s net income was only $667 million.

Ford’s U.S. sales increased by 1.8% in the second quarter compared to the same period last year, thanks largely to an 8% increase in sales of SUVs and crossovers.

However, Ford said these advantages were somewhat offset by inflation, notably the increasing pricing for essential commodities and transportation.

John Lawler, Ford’s Chief Financial Officer, stated that despite challenges from inflation, Ford is sticking to its original guidance for the entire year. 

“We’re moving with purpose and speed into the most promising period for growth in Ford’s history – to innovate and deliver great products and connected services, raise quality and lower costs,” CEO Jim Farley said in a statement. “We’re giving customers great experiences and value, improving our profitability and making Ford the next-generation transportation leader.”

Ford also announced an operating cash flow of $2.9 billion and an adjusted free cash flow of $3.6 billion, which prompted the board of directors to declare a $0.15 dividend per share for all outstanding stock.

Ford also announced an operating cash flow of $2.9 billion and an adjusted free cash flow of $3.6 billion, which prompted the board of directors to declare a $0.15 dividend per share for all outstanding stock.

Additionally, Ford stated that starting in 2023, its three central business units, Ford Blue, Ford Model e, and Ford Pro, will report financial results.