Ford Plunges Almost 10% On Chip Calamity, ‘Confusing’ Outlook

Ford Motor Co. shares plunged by almost 10% Thursday -- the biggest one-day drop since June -- as analysts assailed the company for providing confusing guidance on how the global shortage of computer chips will affect its earnings.

The company posted first quarter adjusted earnings per share Wednesday that were four times better than Wall Street expected, but also warned semiconductor scarcity will cut planned second quarter production in half. Ford lowered its 2021 forecast for adjusted earnings before interest and taxes to a range of $5.5 billion to $6.5 billion -- not much more than the $4.8 billion it made in the first quarter.