DETROIT – Ford Motor on Thursday mentioned its adjusted pretax earnings for the second quarter will “surpass its expectations” and be considerably higher than a 12 months in the past, whereas web earnings shall be “considerably decrease” than the identical interval final 12 months.

The corporate launched the broad steerage forward of a presentation by Ford CEO Jim Farley at Deutsche Financial institution’s world automotive trade convention Thursday afternoon.

“The development in automotive is being pushed by lower-than-anticipated prices and favorable market elements,” the corporate mentioned in a press release. “Moreover, increased automobile public sale values are benefitting Ford Credit score.”

The primary half of the 12 months has been higher than many anticipated for automakers resembling Ford. Provide constraints attributable to elements downside have led to increased automobile costs and income.

Ford’s feedback come a day after General Motors mentioned it expects adjusted pretax earnings of $8.5 billion to $9.5 billion during the first half of the year, up from an estimated $5.5 billion.

In April, Ford forecasted its full-year adjusted pretax revenue to be between $5.5 billion and $6.5 billion, together with an antagonistic impact of about $2.5 billion from the semiconductor challenge. Adjusted free money movement for the complete 12 months was projected to be $500 million to $1.5 billion.

Ford mentioned web earnings for the second quarter is predicted to be considerably decrease than a 12 months in the past, when outcomes included a $3.5 billion acquire in an funding in its self-driving Argo AI unit with Volkswagen. The corporate reported a web revenue of $1.1 billion throughout the second quarter of final 12 months.