DETROIT – Ford Motor raised its earnings forecast for the year after surprising earnings in the second quarter, saying demand for profitable new vehicles like the Ford Bronco SUV will boost its performance.

Sales were slightly below expectations due to the ongoing global shortage of semiconductor chips, which continues to affect the automaker’s production. Ford said Wednesday that supplies of the critical parts are improving, but production of about 700,000 vehicles was lost in the second quarter.

Here’s how Ford fared compared to Wall Street expectations based on Refinitiv’s average estimates.

  • Adjusted results: 13 cents per share, adjusted against a loss of 3 cents per share
  • Automobile sales: $ 24.13 billion versus $ 24.25 billion

Ford increased its adjusted earnings before tax expectations for the full year by approximately $ 3.5 billion to $ 9 billion to $ 10 billion. Sales volume is expected to increase by around 30% from the first to the second half of the year, driven by an improvement in market factors, according to the company.

Despite the spike, Ford said the second half of the year will be weaker than the first in terms of operating profit. CFO John Lawler cited $ 3-4 billion in cheap higher volumes, but said raw material costs, lower Ford Credit revenues, and other factors such as higher warranty costs will detract from results.

Ford stock rose approximately 4% in after-hours trading to more than $ 14.30 per share. The automaker’s shares have more than doubled since Jim Farley became CEO in October, including up more than 50% this year.

Lawler and Farley on Wednesday described the company as a “spring store” for growth in the second half of the year and beyond. They cited strong demand, including reservations, for newly introduced and upcoming vehicles.

Ford’s recent vehicle launches have ranged from the electric Mustang Mach-E crossover and the redesigned F-150 to two new Bronco models, including the “big Bronco” SUV. It also unveiled an all-electric version of its F-150 pickup and a new little pickup called the Maverick, and has started taking reservations.

The results were in line with Ford’s updated guidance. The company announced that its adjusted pre-tax profit for the second quarter would exceed expectations and be “significantly better than a year earlier,” while net income would be “significantly lower” than the same period of the previous year.

The company reported net income of $ 1.1 billion and an adjusted pre-tax loss of $ 1.9 billion in the second quarter of 2020.

In April, Ford projected its adjusted pre-tax profit for the year to be between $ 5.5 billion and $ 6.5 billion, including a negative impact of approximately $ 2.5 billion from semiconductor shortages. This impact was the top end of a previously incurred loss due to the problem.

Ford on Wednesday declined to update its expected profit loss for the year due to semiconductor chip scarcity. Farley said the situation remains “fluid” despite an expected spike in supply in the second half of the year.