Ford Motor Co's stock dropped over 12% on September 20th, in its deepest one-day decline in over a decade after the automaker said inflation-related costs would be $1 billion more than expected in the current quarter and that parts shortages had delayed deliveries.

The stock ended at $13.09, making its percentage decline for the session its largest since January 2011.

Ford's preliminary third-quarter results, released late on September 19th, sent shares of rival General Motors Co down 5.6% as analysts said it might take more time for automakers to recover from chip shortages.

In July, Ford said it expected commodity costs to rise $4 billion for the year.

Ford also estimated it would have 40,000 to 45,000 vehicles in inventory lacking parts.

Ford, which is set to report third-quarter results on Oct. 26, affirmed 2022 adjusted earnings before interest and taxes forecast of $11.5 billion to $12.5 billion.

It is unclear if chip and parts supply will normalize by the end of the year.

Ford's shares are down 37% in 2022, well over the S&P 500's 19% decrease.

Source: Reuters 

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