2023 Ford F-150 Raptor R
DETROIT – Ford engine warned investors on Monday that the company expects to commit $1 billion more than expected in the third quarter due to inflation and supply chain issues.
Ford said supply issues led to parts shortages affecting about 40,000 to 45,000 vehicles, largely high-margin trucks and SUVs, that couldn’t reach dealerships.
The company expects to complete and deliver the vehicles to dealerships in the fourth quarter and still expects 2022 adjusted earnings before interest and taxes of between $11.5 billion and $12.5 billion.
Shares of the company fell about 5% in extended trading after the update.
According to Ford, based on recent negotiations, supplier inflation-related costs in the third quarter will be about $1 billion higher than originally forecast.
The automaker expects third-quarter adjusted earnings before interest and taxes to be between $1.4 billion and $1.7 billion.
The company said executives “will provide more dimension on full-year performance expectations” when the automaker releases its third-quarter results on Oct. 26.
Automakers have grappled with supply chain issues since the coronavirus pandemic halted manufacturing in early 2020. Demand has remained strong, followed by ongoing issues with parts availability, particularly semi-automatic chips. -drivers.
Ford’s biggest rival in Crosstown, General Motors, announced similar issues earlier this year. GA on July 1 informed investors that supply chain issues would impact its second-quarter earnings, as it had approximately 95,000 vehicles in its inventory that were manufactured without certain components.
GM at the time also reconfirmed its full-year guidance and said it expects “substantially all of these vehicles” to be completed and sold to dealerships by the end of 2022.