The Manila Times

Ford slashes Q3 earnings forecast on parts shortage

DEARBORN, Michigan: A shortage of parts that has thousands of Ford’s most profitable vehicles sitting on lots waiting to be fully assembled has forced the United States automobile maker to trim its thirdquarter earnings forecast.

Ford said on Monday (Tuesday in Manila) it expected to have 40,000 to 45,000 unfinished vehicles on its hands when the quarter ends on September 30. Most of those are sports utility vehicles and popular truck models, which are some of Ford’s biggest moneymakers.

The company based in Dearborn, Michigan now expects its third-quarter earnings before interest and taxes to be between $1.4 billion and $1.7 billion. It reported adjusted earnings before interest and taxes of $3.7 billion in the second quarter.

Ford did, however, say it expected the vehicles that it couldn’t fully assemble in the third quarter to be completed and sold to dealers in the fourth. As a result, it reaffirmed its full-year 2022 profit forecast of $11.5 billion to $12.5 billion.

A global shortage of computer chips has hobbled automakers’ ability to fully assemble vehicles and meet high buyer demand. General Motors said in July that shortages of chips and other parts forced it to build 95,000 vehicles without one part or another. It also said its incomplete vehicles were expected to be finished and sold by the end of the year.

Ford also said on Monday its inflation-related supplier costs for the third quarter were about $1 billion above what it had been planning for.

FOREIGN BUSINESS

en-ph

2022-09-21T07:00:00.0000000Z

2022-09-21T07:00:00.0000000Z

https://digitaledition.manilatimes.net/article/281921661906067

The Manila Times