The shares of Ford Motor Co. plunged more than 12% on Tuesday, their deepest one-day decline in more than a decade, after the automaker said inflation-related costs would total $1 billion more than forecast this quarter and that parts shortages delayed deliveries.
The role of the automaker closed the day in wall street at $13.09, making its percentage drop for the session the biggest since January 2011.
Ford’s preliminary third-quarter results, released late Monday, sent rival shares tumbling. General Motors Co. at 5.6%, as analysts said automakers could take longer to recover from semiconductor shortages.
It appears that across the industry, semiconductor and component shortages may be coming out of the crisis at a slower pace than anticipated,” said Emmanuel Rosner, an analyst at Deutsche Bank.
In July, Ford It said it expected raw material costs to rise by $4 billion in the year.
The warning of Ford occurs less than a week after the parcel company FedEx Corp. withdraw its financial forecast due to slowing global demand.
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