Ford's Big Earnings Beat Is a Great Sign for the Future

Ford's Big Earnings Beat Is a Great Sign for the Future

Shares of Ford Motor Company (NYSE: F) plunged last week, after management warned that a worsening semiconductor shortage will knock out roughly half of the automaker's planned production for the second quarter. While supply constraints should moderate in the second half of the year, Ford doesn't expect to get back to normal production rates until 2022. This supply chain mess will dent Ford's profitability and cash flow in 2021.