© Reuters. FILE PHOTO: The Ford logo is pictured at the Ford Motor Co plant in Genk,Belgium December 17, 2014. REUTERS/Francois Lenoir/File Photo
(Reuters) – Ford Motor (NYSE:) Co said on Thursday it expected operating earnings in the second quarter to be better than its previous estimate, helped by higher demand for its pickup trucks and sports utility vehicles.
Adjusted earnings before interest and taxes for the quarter will also be better than the previous year, it said, despite the continuing semiconductor crunch that has made automakers forecast billions in losses.
Lower-than-anticipated costs and favorable market factors drove an improvement in the automotive business.
Dearborn, Michigan-based Ford said customer demand for its recently launched vehicles including Bronco sports utility vehicle and electric F-150 Lightning pickup were strong.
However, net income for the quarter is expected to be significantly lower, as the prior year included a $3.5 billion gain on investment in self-driving startup Argo AI, the automaker said.
Its financial services arm, Ford Credit, is also benefiting from higher vehicle auction values, Ford said.
The company plans to announce second-quarter results and provide its outlook for the second half of the year on July 28.
Ford’s shares rose more than 2% in premarket trading.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.