Ford reveals third-quarter net loss, weighed down by supply chain problems and Argo AI investment

DETROIT – Ford Motor recorded a net loss of $827 million during the third quarter, weighed down by supply chain problems and an investment in autonomous vehicle unit Argo AI.

Still, the automaker narrowly beat Wall Street’s subdued expectations for the period and guided to the lowest end of its previously forecasted earnings for the year.

Shares of the company were down roughly 1% in extended trading following the report.

 Here’s how Ford performed, compared with analysts estimates as compiled by Refinitiv:

• Adjusted earnings per share: 30 cents vs. 27 cents estimated
• Automotive revenue: $37.2 billion vs. $36.25 billion estimated

Ford last month set investor expectations for the third quarter by partially pre-releasing its results, including projected adjusted earnings before interest and taxes in the range of $1.4 billion to $1.7 billion. Some analysts had been expecting a quarterly profit closer to $3 billion.

The company on Wednesday reported adjusted earnings of $1.8 billion for the quarter, down 40% from a year earlier but slightly above its own previously announced expectations.

Ford attributed the lower-than-expected results to parts shortages affecting 40,000 to 50,000 vehicles as well as an extra $1 billion in unexpected supplier costs during the quarter. At that time, the company reaffirmed its full-year guidance of 2022 adjusted earnings before interest and taxes of between $11.5 billion to $12.5 billion.

Ford on Wednesday updated its guidance to forecast full-year adjusted earnings before interest and taxes of about $11.5 billion.

The auto industry’s earnings and forecasts are being closely watched by investors for any signs that consumer demand could be weakening amid rising interest rates and looming recession fears.

Ford’s earnings come a day after crosstown rival General Motors significantly outperformed Wall Street’s earnings expectations but slightly missed on revenue. GM said that demand for its products remains strong despite outside economic concerns and rising interest rates.

This story is developing. Please check back for updates.