Ford Motor Co. (F) reported fourth quarter earnings that missed analysts’ estimates and warned of higher costs in the year ahead, news that sent its stock down more than 7% in premarket trading.
The Detroit automaker posted Q4 earnings of 26 cents U.S. a share, less than the 45 cents U.S. analysts had predicted. Adjusted earnings before interest and taxes of $2 billion U.S. were less than the $2.77 billion U.S. analysts had anticipated.
For 2022, Ford forecasts earnings of $11.5 billion U.S. to $12.5 billion U.S. before interest and taxes, up 15% to 25% over 2021. That compares with analysts’ estimates of US$12.2 billion U.S.
Ford said supply constraints for critical components such as semiconductors prevented the company from meeting customers’ demand. Wholesale deliveries fell 11% in the last quarter to 1.1 million vehicles.
Some analysts had expected double-digit sales growth at Ford. The company is projecting $1.5 billion U.S. to $2 billion U.S. in higher commodity costs this year.
Ford sales rose 5% to $37.7 billion U.S. in the fourth quarter, with automotive revenue accounting for $35.3 billion U.S. of that total and surpassing the $34.6 billion U.S. that analysts expected.
Ford’s loss in China, the world’s largest car market, more than doubled in the quarter to $150 million U.S. from $66 million U.S. the previous year.
The stock fell as much as 7.9% to $18.32 U.S. in extended trading. It’s down 4.2% this year through yesterday’s close (February 3). Ford stock rose more than 100% in 2021.
