LAHORE MIRROR (Monitoring Desk)– Ford Motor Co shares tumbled about 11% on Tuesday, a day after the automaker said inflation-related costs would be $1 billion more than expected in the current quarter and that parts shortages had delayed deliveries.
The stock last traded at $13.33 and was on track for its deepest one-day decline since March 2020, when global markets reeled over the coronavirus pandemic.
Ford’s preliminary third-quarter results, released late on Monday, sent shares of rival General Motors Co down 4.4% as analysts said it might take more time for automakers to recover from chip shortages.
In July, Ford said it expected commodity costs to rise $4 billion for the year.
The Detroit manufacturer’s warning comes less than a week after delivery company FedEx Corp withdrew its financial forecast due to slowing global demand.
Ford, which is set to report third-quarter results on Oct. 26, affirmed 2022 adjusted earnings before interest and taxes forecast of $11.5 billion to $12.5 billion.
It was unclear if chip and parts supply will normalize by the end of the year, Deutsche Bank’s Rosner said.
Ford’s shares are down 36% in 2022, well over the S&P 500’s 19% decrease.
SOURCE: REUTERS
