Thousands of Super Duty pickups sitting off I-71 in Kentucky awaiting chips

Phoebe Wall Howard, Detroit Free Press on

Published in Business News

While commodity price remained stable because of 2020 contracts, Ford is now expecting to see prices on aluminum, steel and precious metals increase by about $2.5 billion, Farley said. "So that's going to hit us as we go through the rest of the year."

Investor's Business Daily said Thursday: "Ford Stock Sinks After Slashing Q2 Production Targets On Chip Shortage That May Last Through 2022."

Barron's said on the same day, "Ford Earnings Crushed Expectations. Why the Stock Is Dropping."

This is what happens when the chief financial officer lowers expectations for full year earnings from $8 billion to $9 billion to between $5.5 billion and $6.5 billion,


Still, analyst Adam Jonas of Morgan Stanley wrote to investors on April 28, "Put it all together and the most favorable auto supply/demand balance in a generation and Ford’s cost-cutting efforts are bearing fruit at a critical time for the House of Dearborn. 2021 is likely to go down as an ‘oddball’ time for the industry given the confluence of consumer strength, inventory tightness and extremely disruptive supply chain issues."

At issue, now, is what the "new regime" led by Farley tells Wall Street on Capital Markets Day on May 26, Jonas said.

When Ford announced the possibility of a licensing deal for Volkswagen AG’s electric car technology, as reported by Bloomberg, stock climbed again. Ford told the Free Press it had nothing to announce yet.

©2021 Visit at Distributed by Tribune Content Agency, LLC.