Inflation spike for Ford, too: a billion in extra costs this quarter

New warning from Ford as it pays for soaring inflation-related costs. The Detroit auto giant expects $1 billion more in supplier costs during the current third quarter due to inflation. Therefore it now expects adjusted ebit between $1.4 billion and $1.7 billion in the third quarter compared to the Bloomberg consensus of $2.6 billion. For the full year 2022, the automotive group does not change guidance and expects adjusted EBIT of $11.5 billion to $12.5 billion.

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Inflation spike for Ford, too: a billion in extra costs this quarter

Supply chain problems have delayed delivery to dealers of 40,000-45,000 vehicles, which will be placed in inventory while waiting for needed parts, the company said in a statement released last night after Wall Street closed. Ford expects these vehicles-mostly high-demand, high-margin trucks and SUVs-will be completed and sold during the fourth quarter, the statement added.

The component shortage may represent a revenue loss of about $1.5 billion according to Equita SIM estimates. "The surprise relates mainly to the component shortage as we had gathered feedback at the sector level of a progressive improvement, although we knew we were still far from a return to normal," the Milan-based sim argued.

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In after hours trading, Ford's stock surged more than 5 percent. The release of third-quarter accounts will come next Oct. 26.

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Withholding Tax General Accepted Accounting Standards Letter Of Intent Scarcity Year-to-date Long-Term Liabilities Non-Disclosure Agreement Chief Operating Officer Return on Investment Chief Marketing Officer Chief Financial Officer Asset Protection Trust Chief Security Officer Certified Financial Planner Electronic Funds Transfer Limited Liability Company Close of Business Company Finance Cash Flow Automated Teller Machine Return on Equity stagnation Certified Management Accountant Non-Profit Organization Certified Financial Manager Chief Technology Officer Profit and Loss Profit and Loss Statement Gross Margin