DETROIT -- The global computer chip shortage cut into third-quarter profits at both Ford and crosstown rival General Motors, with both companies having to temporarily close factories, pinching supplies on dealer lots.
Ford's net income of $1.83 billion fell 23% from a year ago, while GM's profit dropped 40% to $2.4 billion. High prices, mainly for the pickups and big SUVs that the automakers sold, eased the sting from lower sales.
Ford, which reported results after Wednesday's closing bell, said it would resume paying a dividend, 10 cents per share, starting in the fourth quarter. It will cost the company about $400 million per quarter. Ford's stock jumped 7.5% in after-market trading.
The company said its revenue dropped 5% from a year ago to $35.68 billion. That fell short of Wall Street estimates of $38.2 billion.
Excluding one-time items, the Dearborn, Mich.-based company made 51 cents per share, beating the 27 cents expected by analysts polled by FactSet.
Ford's sales fell 27% from July through September in the U.S., its most lucrative market.
GENERAL MOTORS
GM's earnings fell from $4 billion last year as sales slumped and the company lost market share in the U.S., also its most profitable country. Revenue for the quarter plunged 25% to $26.78 billion.
GM Chief Executive Officer Mary Barra told reporters Wednesday that the global shortage of semiconductors, plus covid outbreaks at supplier factories, hit the company during the third quarter. "It still continues to be somewhat volatile," she said.
However, GM is seeing improvement in the current quarter and expects additional supplies in the first three months of 2022.
GM's profit came even though U.S. third-quarter sales were almost 33% lower than a year ago. The company lost 3.8 percentage points of U.S. market share, Edmunds said.
Shares of GM closed Wednesday down 5.4% at $54.26.
