With a drop in Q3 earnings, Ford is joining those affected by supply chain bottlenecks
Ford earnings tumbled in the third quarter amid supply-chain disruptions, which left 40,000 cars in the inventory at the end of September.
On Wednesday, the company reported $1.8 billion in quarterly operating profit. This is 40% down from the same period a year earlier. Analysts were expecting $2.8 billion.
On the bright side, free cash flow for the first nine months already pips its original full-year guidance of $6.5 billion.
This is a welcome development after the company brought back its dividend at the end of 2021.
Other automakers have some bad news piling up too since Tesla fell short of Wall Street expectations also.
The company posted $3.3 billion in profit and $21.45 billion in revenue on Wednesday, as vehicle production outstrips delivery.
One may seem to make the exception from what seems to become the rule these days.
On Tuesday, General Motors backed full-year targets after its Q3 earnings beat.
The results come after the company issued a downward revision last quarter: Thousands of mostly finished GM cars couldn’t ship for want of specific parts.
Nonetheless, the automaker made $4.3 billion in operating profit, clocked in 13% higher than Wall Street’s projections.
In a letter to shareholders Tuesday, GM CEO Mary Barra said the company was maintaining full-year guidance despite a challenging environment.
Ford also held stoically to full-year guidance. Supply snarls and inflation remain a problem still, and if parts shortages persist the top-line vehicles get held back.
Also, the increasing costs of raw materials prompt automakers to raise sticker prices and accentuate higher-profit models to keep the bottom line working.