Ford Motor Company is working with its supply base to offset impacts of a fire that occurred at one of the company’s suppliers last week and is affecting the production of certain vehicles, due to a shortage of die-cast components.
“This is a fluid situation, but we are working closely with our supplier partners to do everything we can to limit the impact on our production,” said Joe Hinrichs, executive vice president and president of Global Operations. “It’s a full team effort and we’re confident that any impacts will be short term. The good news is we have strong inventories of our best-selling F-Series pickups and other vehicles, and customers won’t have a problem finding the model they want.”
Current impacts from the supply shortage, included:
- F-150 production is suspended at Kansas City (Mo.) Assembly Plant and will also be suspended at the Dearborn (Mich) Truck Plant at the end of the afternoon shift tonight
- Ford F-Series Super Duty production is down at Kentucky Truck Plant in Louisville. Ford expects Super Duty production to continue at Ohio Assembly Plant in Avon Lake
While the production shortage is expected to have an adverse impact on the company’s near term results, the company’s guidance of delivering an adjusted EPS in the range of $1.45 to $1.701 for the full year is unchanged.
1 Adjusted earnings per share is a non-GAAP financial measure. Ford does not provide guidance on an earnings per share basis, the comparable GAAP financial measure. Ford’s earnings per share in 2018 will include potentially significant special items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end, including pension and OPEB remeasurement gains and losses.
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- Ford’s long-term competitiveness depends on the successful execution of fitness actions;
- Industry sales volume, particularly in the United States, Europe, or China, could decline if there is a financial crisis, recession, or significant geopolitical event;
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- Economic and demographic experience for pension and other postretirement benefit plans (e.g., discount rates or investment returns) could be worse than Ford has assumed;
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