Ford Motor Company (NYSE:F) saw its shares drop in after-hours New York trading on Monday after the automaker said inflation and parts shortages will leave it with more unfinished vehicles than it had expected.
Ford said it expects to have between 40,000 and 45,000 vehicles in inventory at the end of the third quarter because it is “lacking certain parts presently in short supply”.
The unfinished vehicles include high-demand, high-margin models of popular trucks and SUVs, Ford said, and it will cause some shipments and revenue to shift to the fourth quarter.
The firm also said that based on its recent negotiations, payments to suppliers will run about $1 billion higher than expected for the quarter, thanks to inflation.
Ford, however, reaffirmed its outlook for the year, reiterating expectations for full-year 2022 adjusted earnings before interest and taxes (EBIT) of between $11.5 billion and $12.5 billion, despite the shortages and the higher payments to suppliers.
Ford said it expects third-quarter adjusted EBIT of between $1.4 billion and $1.7 billion. The company is due to its report third-quarter financial results on October 26, when it said it expects to “provide more dimension about expectations for full-year performance”.
The company has embarked on a reorganization to pivot to electric vehicles, and last month confirmed layoffs in connection with its new structure.
Shares of Ford shed 4.5% in after-hours trade to $14.26, having ended the regular trading day up 1.5%.