Ford Stock Drops 5% On Lowered Guidance
Shares of Ford Motor Co. (F) are down 5% after the Detroit automaker warned that its supplier costs are $1 billion U.S. higher than had been expected due to rising inflation. Consequently, the automotive manufacturer said it now expects earnings in the range of $1.4 billion U.S. to $1.7 billion U.S. when it reports results in October. The new forecast is far below the $3.7 billion U.S. in earnings Ford reported in its previous quarter, and the $3 billion U.S. it earned in the year ago period. The company said in a written statement that an ongoing parts shortage will keep its inventory of half-completed vehicles elevated in the coming months. Ford is the latest in a series of companies to warn of deteriorating earnings in the face of macroeconomic headwinds. FedEx (FDX), General Electric (GE) and McDonald’s (MCD) have each warned of waning demand, supply-chain issues, and inflation in recent weeks. Ford now estimates that its number of partially completed vehicles will total 40,000 to 45,000 at the end of the current third quarter.
Ford Stock Drops 5% On Lowered Guidance
Shares of Ford Motor Co. (F) are down 5% after the Detroit automaker warned that its supplier costs are $1 billion U.S. higher than had been expected due to rising inflation. Consequently, the automotive manufacturer said it now expects earnings in the range of $1.4 billion U.S. to $1.7 billion U.S. when it reports results in October. The new forecast is far below the $3.7 billion U.S. in earnings Ford reported in its previous quarter, and the $3 billion U.S. it earned in the year ago period. The company said in a written statement that an ongoing parts shortage will keep its inventory of half-completed vehicles elevated in the coming months. Ford is the latest in a series of companies to warn of deteriorating earnings in the face of macroeconomic headwinds. FedEx (FDX), General Electric (GE) and McDonald’s (MCD) have each warned of waning demand, supply-chain issues, and inflation in recent weeks. Ford now estimates that its number of partially completed vehicles will total 40,000 to 45,000 at the end of the current third quarter.