Ford reports a marginal increase in quarterly sales, falling short of analysts' estimates

Ford Motor revealed on Tuesday that second-quarter new car sales increased slightly but fell short of predictions from industry analysts.

The business reported that sales increased by 1.8 percent to 483,688 new automobiles in the second quarter compared to the same period last year, but added that June's performance was better and was up by 31.5 percent overall. Analysts predicted that the Detroit automaker's sales will increase by 3.3% to 5.1%.

“Amid industry-wide supply constraints, Ford outperformed the industry driven by strong F-Series, Explorer and new Expedition and Navigator SUV sales,” Andrew Frick, Ford’s vice president of sales, distribution and trucks.

The auto maker's performance during the quarter easily beat that of the industry as total sales were anticipated to drop between 19 and 21% from the same time last year.

Due to a global shortage of semiconductor chips and other essential automobile components, automakers have been desperately trying to replenish dealer stockpiles that have been severely damaged by production cuts.

On Tuesday, Ford stock reached a 52-week low of $10.61. In midday trade, the stock was trading at roughly $10.90, down more than 3%. Ford's stock price has dropped 47% in 2022.

The chip scarcity that adversely damaged Ford a year ago was mostly caused by fire at one of its Japanese suppliers that necessitated production reductions in the first half of 2021.

According to the company, demand is still high, with a record 50% of retail sales in June from customer orders as opposed to purchases from dealer stocks. Vehicle orders have been encouraged by manufacturers, which helps businesses better gauge demand and formulate strategic plans. According to Ford, its retail sales last month increased 30.3 percent over the same period in 2017.

The company also saw an increase in Ford's F-Series truck sales to 57,673 units in June making it the highest monthly total of the year. The F-150 and larger versions of the pickup are among the models that are selling.

About Ford

A Ford Motor Company (NYSE: F) is a multinational corporation with its headquarters in Dearborn, Michigan. It is dedicated to assisting in the creation of a better world where everyone has the freedom to move and realize their goals. In order to improve customer experiences and increase their loyalty, the company's Ford+ plan for growth and value creation combines current strengths, new capabilities, and always-on relationships with customers. Ford creates and provides cutting-edge, necessary Ford pickup trucks, sport utility vehicles, commercial vans and sedans, Lincoln luxury vehicles, linked services, and connected devices. Ford also offers financial services through Ford Motor Credit Company and is forging leadership positions in mobility solutions, including self-driving technology. Around 182,000 individuals work for Ford worldwide.