Ford expects higher third-quarter costs and weaker earnings

Ford Motor Co., citing inflationary pressures along the supply chain, said Monday it expects to end the third quarter with adjusted earnings before interest and taxes of between $1.4 billion and $1.7 billion, down from the $3 billion in adjusted profit it posted in the same period. period a year ago.

The company’s latest guidance for the third quarter is also lower than FactSet’s analyst consensus estimate of $2.98 billion.

The automaker, however, reaffirmed its full-year guidance of $11.5 billion to $12.5 billion in adjusted EBIT, 15 to 25 percent higher than in 2021.

The automaker said inflation-related supplier costs in the third quarter will be about $1 billion higher than it had originally expected.

He expects to end the period with between 40,000 and 45,000 unfinished vehicles awaiting parts. Most of those vehicles, he said, will be high-margin trucks and utility vehicles.

Ford ended the second quarter with about 18,000 unfinished vehicles.

The company will release its third quarter results on October 26.

Shares of Ford closed up 21 cents at $14.93 on Monday, but fell 5.5% in post-market trading after the company issued the third-quarter profit warning.

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