Ford Motor Company (NYSE:F) shares are trading lower by 17.2% to $12.01 since the start of Monday's trading session on continued weakness. Ford during Monday's after-hours session previewed the effect of parts shortages on the company in the third-quarter and reaffirmed full-year adjusted EBIT guidance as low as $11.5 billion or as high as $12.5 billion.
Shares of several auto & auto component companies at large, including Ford, are also trading lower during Friday's session amid raised fears of an economic slowdown as investors continue to assess Wednesday's Fed commentary and 75 bps rate hike. An economic slowdown could negatively impact discretionary spending.
What Happened Monday?
Ford Monday says the company expects to have about 40,000 to 45,000 vehicles in inventory at end of third quarter lacking certain parts presently in short supply
- Ford says "vehicles on wheels" awaiting those parts disproportionately include high-demand, high-margin models of popular trucks and SUVs
- The company notes that completing such vehicles will shift some revenue and EBIT to fourth-quarter; based on recent negotiations, inflation-related third-quarter supply costs will be ~$1.0 billion above plan
- Anticipates third-quarter adjusted EBIT of between $1.4 billion and $1.7 billion
According to Ford, based on recent negotiations, inflation-related supplier costs during the third quarter will run about $1.0 billion higher than originally expected. Ford now anticipates third-quarter adjusted EBIT to be in the range of $1.4 billion and $1.7 billion.
The company intends to announce full third-quarter 2022 financial results – and provide more dimension about expectations for full-year performance – on Wednesday, October 26th.
According to data from Benzinga Pro, Ford has a 52-week high of $25.87 and a 52-week low of $10.61.