Hyperdrive
Ford Selloff Deepens After Warning of $1 Billion in Extra Costs
- Carmaker expects third-quarter earnings below prior period
- Shortages could result in 45,000 partially built vehicles
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Ford Motor Co. fell the most in over a decade after saying inflation is pushing supplier costs $1 billion higher than expected in the current quarter, joining the chorus of major corporations warning about challenges rippling through the economy.
The automaker expects adjusted earnings before interest and taxes in the range of $1.4 billion to $1.7 billion when it reports results next month. The preliminary estimate is well below the $3.7 billion in adjusted EBIT Ford reported last quarter and the $3 billion it earned a year ago. Shortages of key parts will also keep its inventory of half-completed vehicles elevated, according to a statement late Monday.