Ford Motor Co. shares dropped more than 5% in the extended session Monday after the auto maker reaffirmed its outlook for the year but said inflation and parts shortages will leave it with more unfinished vehicles than it had expected.
Ford F, +1.43% said it expects to have between 40,000 and 45,000 vehicles in inventory at the end of the third quarter “lacking certain parts presently in short supply.”
The auto maker also said that based on its recent negotiations, payments to suppliers will run about $1 billion higher than expected for the quarter, due to inflation.
The unfinished vehicles include high-demand, high-margin models of popular trucks and SUVs, the company said. That will cause some revenue to shift to the fourth quarter.
Ford reaffirmed expectations of full-year 2022 adjusted earnings before interest and taxes of between $11.5 billion and $12.5 billion, despite the shortages and the higher payments to suppliers, it said.
Ford called for third-quarter adjusted EBIT of between $1.4 billion and $1.7 billion.
Shares of Ford ended the regular trading day up 1.4%. The company has embarked on a reorganization to pivot to electric vehicles, and last month confirmed layoffs in connection with its new structure.
Ford is slated to report third-quarter financial results on Oct. 26, when it said it expects to “provide more dimension about expectations for full-year performance.”
Analysts polled by FactSet expect the auto maker to report adjusted earnings of 51 cents a share, which would match the third-quarter 2021 adjusted EPS, on revenue of $38.8 billion.
The quarterly sales would compare with $35.7 billion in revenue in the year-ago period.
Shares of Ford have lost 28% so far this year, compared with losses of 18% for the S&P 500 index SPX, +0.69%.
The news comes a week after FedEx Corp. FDX, +1.17% roiled markets and raised fears of an economic slowdown by withdrawing its outlook for the year and warning that the year was likely to become worse for the business.