Commodity costs continued to be a headwind for Ford Motor, CEO Jim Farley advised CNBC’s Jim Cramer on Wednesday, however the firm has managed to offset them by its pricing technique.
“The commodity stress, the premium freight we’re seeing, I imply it is actually actual. … The nice factor is, our pricing has offset all of that. I consider we’re underearning as an organization, so now we have extra prices to do that 12 months, subsequent 12 months, subsequent couple years,” Farley mentioned in an interview on “Mad Money.”
A number of the commodities the place Ford has seen increased prices embrace metal, aluminum, nickel, cobalt and lithium, in response to Farley.
“We had a few actually unhealthy commodities that held up our most worthwhile items and we expect that is an space the place now we have upside in second quarter, second half,” he added.
Farley’s feedback come as Wall Street fears that increased prices and provide chain snarls will pressure General Motors‘ and Ford’s earnings this 12 months.
The chief government additionally mentioned that the corporate plans to take additional pricing motion, significantly on its electrical autos. Farley told CNBC on Tuesday that he believes the corporate will be capable to produce 150,000 F-150 Lightning EVs throughout the subsequent 12 months or so, even within the face of provide chain woes.
Ford reported better-than-expected income and earnings in its first quarter on Wednesday. Shares of Ford climbed about 1% after hours.
Disclosure: Cramer’s Charitable Belief owns shares of Ford.
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