Chip shortage lessen for Ford

Article Excerpt

FORD MOTOR CO. $14 is still a hold. The automaker (New York symbol F; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 3.9 billion; Market cap: $54.6 billion; Price-to-sales ratio: 0.4; Dividend suspended in March 2020; TSINetwork Rating: Extra Risk; www.ford.com) has suspended car and truck production at eight of its plants in North America in July 2021 due to an ongoing shortage of computer chips. They control a variety of vehicle functions. The chip shortage hurt Ford’s vehicle production in the first half of 2021, but not as much as it initially expected. The company now sees volumes rising 30% in the second half. Even so, rising prices for commodities will probably cut Ford’s gross earnings (before interest and taxes) from $6 billion in the first half of 2021 to between $3 billion and $4 billion in the second half. Ford Motor is a hold. hold…