(Reuters) -Ford Motor on Thursday raised its annual pre-tax profit expectation, as improving supply chains helped the automaker produce more pickup trucks and crossover family-SUVs to meet sustained demand from consumers.
Ford said it will take longer to accelerate EV production to an annualized rate of 600,000 vehicles annually. Previously Ford had said it would hit that rate late this year. Now the company is aiming to reach that pace in 2024.
Ford said it now expects its electric vehicle unit, Model e, to lose $4.5 billion this year, 50% higher than its previously forecast loss of $3.0 billion.
The company now expects pre-tax profit for the year to come in between $11 billion and $12 billion, compared with its prior forecast of $9 billion to $11 billion.
Adjusted earnings before interest and taxes rose slightly to $3.8 billion in the quarter, from $3.7 billion a year earlier. Adjusted EBIT margin dropped to 8.4% from 9.3% last year.
Revenue rose to $45 billion, from the year-ago $40.2 billion.
An improvement in the overall supply chain has aided automakers to ramp up production and get enough vehicles to dealer lots on time to meet a strong demand for personal mobility.
Better offers and financing options on vehicles has also swayed more consumers to consider purchasing new vehicles in place of used vehicles and leasing options.
Although the decision to shift toward making more electric vehicles has added on to costs for top automakers, as they continue to struggle with labor constraints.
Ford shares rose nearly 1% after-hours trade.
(Reporting by Nathan Gomes in Bengaluru; Joe White, Ben Klayman and Paul Lienert in DetroitEditing by Arun Koyyur and Anna Driver)
