Ford Warns of Costs Due to 3Q Supply Chain and Parts Shortages... Stock Falls 4%

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] American automaker Ford announced on the 19th (local time) that it expects an additional cost of $1 billion (approximately 1.4 trillion KRW) in the third quarter (July-September) of this year due to inflation and supply chain issues.

According to CNBC and other broadcasts, Ford maintained its full-year earnings forecast at the previously expected $11.5 billion to $12.5 billion and made this announcement. Ford projected that its adjusted operating profit for the third quarter would be around $1.4 billion to $1.7 billion.

It also added that supply chain problems affected some parts, causing disruptions in the production of 40,000 to 45,000 units, mainly trucks and sport utility vehicles (SUVs), which have high profitability. Ford expects production to be completed and delivery to dealers to occur during the fourth quarter.

The Wall Street Journal (WSJ) evaluated, "Ford's announcement indicates that the supply chain disruptions, which have troubled the industry for over a year, continue to weigh on profits in the automotive sector."

Ford's stock price fell more than 4% in after-hours trading following the announcement.

This content was produced with the assistance of AI translation services.