Ford cuts profit forecast after a supplier fire halts truck production, impacting operations and future earnings outlook.
Following a serious fire at supplier Novelis’ aluminum facility in New York on September 16, Ford Motor Company has adjusted its annual operating profit expectations. The company now anticipates earnings between $6 billion and $6.5 billion, compared to the earlier projection of $6.5–7.5 billion.
The incident temporarily halted the production of aluminum sheets that are essential for assembling Ford’s highly popular F-150 and other F-series pickup trucks. This disruption has caused significant production delays across several plants, prompting the automaker to take swift corrective measures.
In an effort to minimize the impact of the supply disruption, Ford announced plans to hire 1,000 new employees at its Michigan and Kentucky plants. This workforce expansion is expected to enable the company to boost production by roughly 50,000 vehicles over the upcoming months and gradually balance out the supply chain shortage.
Despite the setbacks resulting from the fire, Ford’s third-quarter results exceeded Wall Street expectations. The automaker reported a net income of $2.4 billion and achieved record-breaking revenue reaching $50.5 billion. Analysts noted that the company’s position remains competitive, particularly in the U.S. market.
However, the quarter was also affected by approximately $700 million in customs duties, adding pressure to overall profitability. Experts suggest that Ford’s relative strength compared to its European peers is partly due to favorable tariff exemptions retained under the previous U.S. administration, which continue to play a strategic role in the company’s cost management.
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