Ford’s profits are falling 50 percent due to the global chip shortage.

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Ford Motor said Wednesday its profit for the three months ended June fell nearly 50 percent to $561 million, largely as the global computer chip shortage prevented the company from selling more cars and trucks.

But the result was not as bad as the automaker feared. Ford also gave a more optimistic outlook for the full year and said it now expects an adjusted operating profit in the $9 billion to $10 billion range, about $3.5 billion more than previously estimated.

“We’re really leaning towards allocating chips to our higher-profit vehicles,” John Lawler, Ford’s chief financial officer, told reporters in a conference call. “Pricing has remained very strong, much higher than we thought.”

Ford reported revenue of $26.8 billion in the second quarter, up 36 percent from the same period a year ago when sales were slowed by the coronavirus pandemic.

During parts of this month, Ford had to halt or slow production of highly profitable models such as the F-150 pickup truck and various sports utility vehicles. It also slowed production of the Mustang Mach-E, an electric vehicle Ford relies on to compete with Tesla and win new customers.

The company said the supply of computer chips will increase in the second half of the year, but will remain tight. Japanese company Renesas, one of its main suppliers, is ramping up production after a fire broke out in one of its facilities this year.

Mr Lawler said Ford has upgraded its profit outlook because it now expects to ship 30 percent more vehicles to dealers in the second half of the year than in the first half. Some of these cars will come from the 60,000 to 70,000 vehicles the company currently produces without electronic components. Most of these will be shipped to dealers this quarter, he said.

General Motors seemed to be handling the shortage better than Ford, but it also had to cut production of profitable pickup trucks this month. GM announces its second-quarter results on Aug.

Tesla on Monday Reported record profit of $1.1 billion for the second quarter. While the company was affected by the shortage, it was able to switch to more readily available types of chips.

Still, Tesla’s CEO, Elon Musk, said that the chip shortage is limiting the company’s production. “It seems to be improving, but it’s hard to predict,” he told analysts on a conference call.

Semiconductor shortage, automobile industry Strong demand for cars and trucks in the United States.

Ford, in particular, is launching several new models it trusts. mind your businessstruggled in recent years. The company’s new models include a redesigned F-150, a Bronco SUV and the Mustang Mach-E. It’s set to add a more powerful Bronco SUV and an electric F-150 in the coming months.

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