Ford warns investors of an additional $1 billion in supply chain costs in the third quarter


2023 Ford F-150 Raptor R


DETROIT — Ford Motor warned investors Monday that the company expects to incur $1 billion more in costs in the third quarter than previously expected due to higher costs and supply chain issues.

Ford said delivery problems have resulted in a parts shortage of about 40,000 to 45,000 vehicles that have been unable to reach dealers.

ALSO READ  Australia increases visa quota - here are some popular routes for skilled South Africans

The company expects to complete and deliver the vehicles to dealers in the fourth quarter and still forecast 2022 adjusted earnings before interest and taxes of between $11.5 billion and $12.5 billion.

The company’s shares fell about 5% in extended trading after the update.

Ford said, based on recent negotiations, inflation-related supplier costs will be about $1 billion higher than originally expected in the third quarter.

ALSO READ  American Airlines to add new premium suites in 2024 race for high-paying travelers

The automaker expects adjusted earnings for the third quarter before interest and taxes to be between $1.4 billion and $1.7 billion.

The company said executives will “add more dimension to expectations for full-year performance” when the automaker reports its third-quarter results on Oct. 26.

Automakers have struggled with supply chain problems since the coronavirus pandemic brought production to a standstill in early 2020. Demand remained strong, followed by continued issues with parts availability, especially semiconductor chips.

ALSO READ  Bed Bath & Beyond will close about 150 stores. Here's a map of the ones on the list so far

This is the latest news. Come back for updates.


Please enter your comment!
Please enter your name here