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

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ADVICE – Ford Motor on Monday warned investors that the company expects to incur $1 billion more in costs than previously expected in the third quarter due to rising costs and supply chain issues. response.

Ford said supply issues have resulted in parts shortages that affect between 40,000 and 45,000 vehicles unable to reach dealerships.

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

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

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

The automaker predicts third-quarter adjusted earnings before interest and taxes to be in the $1.4 billion to $1.7 billion range.

The company said executives will “provide additional dimension to expectations for full-year performance” when the automaker reports third-quarter results on October 26.

Automakers have been facing supply chain issues since the coronavirus pandemic brought production to a standstill in early 2020. Demand continues to surge, leading to problems There is an ongoing issue about the availability of parts, specifically semiconductor chips.

This is breaking news. Please check back for updates.

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