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Why Stellantis N.V. Shares Are Diving Following Ford News

Published 20/09/2022, 15:48
© Reuters.  Why Stellantis N.V. Shares Are Diving Following Ford News
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Stellantis NV (NYSE: STLA) shares are trading lower by 3.05% to $13.20 Tuesday morning in sympathy with peer automaker Ford Motor Company (NYSE: NYSE: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.

According to data from Benzinga Pro, Stellantis NV has a 52-week high of $21.92 and a 52-week low of $11.37.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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