Lordstown Motors reports first quarterly profit on asset sale to Foxconn

Lordstown’s logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

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Aug 4 (Reuters) – Lordstown Motors Corp (RIDE.O) on Thursday reported its first quarterly profit as the electric-vehicle firm benefited from the sale of certain assets including its Ohio assembly line to Taiwanese contract manufacturer Foxconn (2354.TW).

The company’s shares rose 4.8% in premarket trading as it also lowered its expected capital needs for the year to between $50 million and $75 million from about $150 million, citing lower expenses. read more

The EV company recorded a gain of more than $100 million in the April-June quarter from the Ohio asset sale, which was prompted by the need for funding amid industry-wide supply chain disruptions and rising material costs. read more

That helped it post a net income of $63.7 million, compared with a loss of $108.2 million a year earlier.

On an adjusted basis, the company posted a loss of 19 cents per share that was narrower than the analyst’s average estimate of a 45 cents per share loss, according to Refinitiv data.

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Reporting by Akash Sriram in Bengaluru; Editing by Aditya Soni

Our Standards: The Thomson Reuters Trust Principles.

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