Ford warns investors of an extra $1 billion in supply chain

0
81
Ford Motor on Monday warned investors that the company expects to incur an extra $1 billion in costs during the third quarter due to inflation and supply chain issues.
Ford said supply problems have resulted in parts shortages affecting roughly 40,000 to 45,000 vehicles, primarily high-margin trucks and SUVs that haven’t been able to reach dealers.
The automaker reaffirmed its full-year guidance, saying it expects to deliver the vehicles to dealers in the fourth quarter.
DETROIT – Ford Motor on Monday warned investors that the company expects to incur an extra $1 billion in costs during the third quarter due to inflation and supply chain issues.
Ford said supply problems have resulted in parts shortages affecting roughly 40,000 to 45,000 vehicles, primarily high-margin trucks and SUVs that haven’t been able to reach dealers.
The company expects to complete and deliver the vehicles to dealers in the fourth quarter and is still projecting 2022 adjusted earnings before interest and taxes of between $11.5 billion to $12.5 billion.
Shares of the company fell about 5% in extended trading following the update.
Ford cited recent negotiations resulting in inflation-related supplier costs that will run about $1 billion higher than originally expected.
The automaker anticipates third-quarter adjusted earnings before interest and taxes to be in the range of $1.4 billion to $1.7 billion.

[Read More…]