Ford reported better-than-expected results Wednesday, citing a "significant" improvement in semiconductor availability in the latest quarter and announcing it would restore dividends.

The Detroit giant, which has joined other major automakers in cutting back production amid a global chip shortage, saw lower revenues tied to a drop in car sales compared with the year-ago period.

But Ford said semiconductor availability in the latest three months was "markedly improved" from the prior quarter, even as supply "remains a challenge."

Profits fell 23 percent to $1.8 billion on a five percent drop in revenues to $35.7 billion, the automaker said in a statement.

Ford lifted its full-year operating profit forecast and said its board voted to reinstate a dividend. Investors will get 10 cents a share on December 1.

Like General Motors and other rivals, Ford is aggressively ramping up investments in electric vehicles. The company has unveiled an all-electric version of its popular F-150 pickup truck and plans a new F-Series truck plant in Tennessee.

The company's share price rose 3.7 percent to $16.09 in after-hours trading.