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Ford earnings could fall as a result of Japan's earthquake

Ford earnings could fall as a result of Japan's earthquake

Ford revealed today that parts shortages stemming from Japan's March 11 earthquake could erode its overall earnings.

Ford may not have a single production facility in Japan, but the Dearborn-based automaker revealed today in a U.S. filing that its earnings could be impacted by the March 11 earthquake.

Although Ford doesn't operate any production plants in Japan, it does depend on a number of Japanese suppliers, which could impact overall production. Ford predicts it could face parts shortages through May, and possibly beyond.

"Because the situation in Japan continues to develop, supply interruptions related to other materials and components from Japan could manifest themselves in the weeks ahead," Ford said in the filing.

Ford's North American operations are a bit more insulated, but the crisis in Japan could threaten its Asian operations, including joint-ventures. Ford says it could be forced to slow or even halt certain vehicle production, which would hurt its overall financial condition.

References
1.'Ford" Japan crisis...' view