Ford Motor Co.'s warning last week that its third-quarter earnings will be marred by higher-than-expected supplier costs and a lack of parts is the latest sign of the lingering supply chain woes plaguing the industry.
The automaker said that inflation-related supplier costs during the third quarter will run about $1 billion higher than it had expected. Separately, it expected to finish the period with 40,000 to 45,000 unfinished vehicles waiting on parts, most of which will be high-margin pickups and utility vehicles.
As a result, Ford cautioned that adjusted earnings before interest and taxes will be about half of the $3 billion that analysts had estimated. Ford's stock suffered its largest one-day decline in more than a decade on the news.