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Stellantis NV STLA shares are trading lower by 3.05% to $13.20 Tuesday morning in sympathy with peer automaker Ford Motor Company F following the company’s warning that part shortages will impact its third-quarter results.
What Happened?
Ford says the company expects to have about 40,000 to 45,000 vehicles in inventory at end of third quarter lacking certain parts presently in short supply
- Ford says “vehicles on wheels” awaiting those parts disproportionately include high-demand, high-margin models of popular trucks and SUVs
- The company notes that completing such vehicles will shift some revenue and EBIT to fourth-quarter; based on recent negotiations, inflation-related third-quarter supply costs will be ~$1.0 billion above plan
- Anticipates third-quarter adjusted EBIT of between $1.4 billion and $1.7 billion
According to Ford, based on recent negotiations, inflation-related supplier costs during the third quarter will run about $1.0 billion higher than originally expected. Ford now anticipates third-quarter adjusted EBIT to be in the range of $1.4 billion and $1.7 billion.
The company intends to announce full third-quarter 2022 financial results – and provide more dimension about expectations for full-year performance – on Wednesday, October 26th.
See Also: So Does Elon Musk’s Tesla Or Lucid Make The Cooler-Looking Electric Vehicle?
According to data from Benzinga Pro, Stellantis NV has a 52-week high of $21.92 and a 52-week low of $11.37.
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Image and article originally from www.benzinga.com. Read the original article here.