Stubbornly high warranty expenses and lagging cost-cutting efforts are holding back Ford Motor Co.'s profits this year, causing the company to lower its full-year earnings guidance.

That pushed the company’s stock price down 6% in trading after Monday’s closing bell.

The Dearborn, Michigan, automaker, which reported third-quarter earnings Monday, said its net profit tumbled nearly 26% as it took $1 billion in accounting charges to write down assets for a canceled three-row electric SUV.

Ford said it made $892 million from July through September, compared with $1.2 billion it made a year earlier.

But excluding the one-time items, the company made an adjusted pretax profit of $2.6 billion, or 49 cents per share. That beat analyst estimates of 46 cents, according to FactSet.

Revenue rose 5.5% to $46.2 billion, also beating Wall Street predictions. Ford reduced its full-year pretax income guidance to $10 billion, at the low end of the $10 billion to $12 billion it expected at the end of the second quarter, spooking investors.

“Cost, especially warranty, has held back our earnings power, but as we bend that curve, there is significant financial upside for investors,” CEO Jim Farley told analysts on a conference call.

Chief Financial Officer John Lawler said warranty costs were slightly below the third quarter of last year, but still high. The company wouldn’t give numbers until it files its quarterly report with securities regulators on Tuesday but said costs will be higher than a year ago.

Ford reported $800 million of increased warranty costs for the second quarter of this year.

Farley has been trying to get a handle on warranty costs for the past four years. In October of 2020, he said the company was working to cut quality-related repairs after glitch-prone small-car transmissions hit the automaker’s bottom line.

Ford has said that it has a $7 billion cost gap with competitors, and Lawler said Monday it has made progress on that figure. The problem is competitors, which he did not identify, are cutting costs too. “We’ve taken cost out, but we’re not doing it at a pace faster than our competition,” he told analysts.

Ford has removed $2 billion in material, freight and labor costs this year, but that was offset by warranties and inflation at its Turkish joint venture, he said.

He said Ford is focused on reducing warranty and other costs, which will show up in later quarters.

The company’s plans are working, as evidenced by 10 straight quarters of revenue growth, Lawler said.

Farley said Ford has restructured its operations in Europe, South America, India and China, which collectively lost $2.2 billion in 2018 but together are profitable now. For instance, China, including exports, has contributed over $600 million to pretax earnings this year, Farley said.

The Supreme Court on Tuesday refused to step into a legal fight over state laws that require contractors to pledge not to boycott Israel.

The justices rejected an appeal on behalf of an alternative weekly newspaper in Little Rock, Arkansas, that objected to a state law that reduces fees paid to contractors that refuse to sign the pledge.

The full federal appeals court in St. Louis upheld the law, overturning a three-judge panel’s finding that it violated constitutional free speech rights.

Similar measures in Arizona, Kansas and Texas were initially blocked by courts, prompting lawmakers to focus only on larger contracts. Arkansas’ law applies to contracts worth $1,000 or more.

Republican legislators in Arkansas who drafted the 2017 law have said it wasn’t prompted by a specific incident in the state. It followed similar restrictions enacted by other states in response to a movement promoting boycotts, divestment and sanctions of Israeli institutions and businesses over the country’s treatment of Palestinians. Israeli officials said the campaign masked a deeper goal of delegitimizing and even destroying their country.

Wisconsin’s conservative-controlled Supreme Court ruled Friday that absentee ballot drop boxes may be placed only in election offices and that no one other than the voter can return a ballot in person, dealing a defeat to Democrats who said the decision would make it harder to vote in the battleground state.

However, the court didn’t address whether anyone other than the voter can return his or her own ballot by mail. That means that anyone could still collect multiple ballots for voters and, instead of using a drop box, put them in the mail.

Republicans have argued that practice, known as ballot harvesting, is ripe with fraud although there has been no evidence of that happening in Wisconsin. Democrats and others argue that many voters, particularly the elderly and disabled, have difficulty returning their ballots without the assistance of others.

Supporters argue drop boxes are a better option than mailing ballots because they go directly to the clerks and can’t be lost or delayed in transit.

The decision sets absentee ballot rules for the Aug. 9 primary and the fall election; Republican U.S. Sen. Ron Johnson and Democratic Gov. Tony Evers are seeking reelection in key races.

Johnson and other Republicans hailed it as a win for voter integrity.

“This decision is a big step in the right direction,” Johnson said.

Evers and other Democrats said the ruling will make it more difficult for people to vote.

“It’s a slap in the face of democracy itself,” said Democratic Party Chairman Ben Wikler.

The court’s 4-3 ruling also has critical implications in the 2024 presidential race, in which Wisconsin will again be among a handful of battleground states. President Joe Biden defeated Donald Trump in 2020 by just under 21,000 votes, four years after Trump narrowly won the state by a similar margin.

New Orleans City Council President Jason Williams and an attorney in his law firm pleaded not guilty to federal tax fraud charges on Friday.

Williams, 47, and Nicole Burdett, 39, appeared remotely before a federal magistrate judge and entered their pleas to charges of conspiracy, preparing false or fraudulent tax returns and failing to file tax forms related to cash received, news outlets reported.

The two were charged in an 11-count indictment  last month following a yearslong investigation led by the Internal Revenue Service and the FBI.

Williams, a criminal defense lawyer, was accused of inflating his business expenses from 2013 to 2017 in order to reduce his tax liability by more than $200,000, according to the U.S. Attorney’s Office for the Western District of Louisiana. The indictment also alleged Williams and Burdett, an attorney in Williams’ law office who also handled administrative duties, failed to file the proper reports on cash payments from clients totaling $66,516.

Williams’ attorney, Billy Gibbens, has contended his client was just following the advice of his tax preparer, saying the accountant made the errors on his own, according to The Times-Picayune/The New Orleans Advocate. Michael Magner, an attorney for Burdett, also said his client was innocent and did not have any role in the tax decisions.

Williams and Gibbens raised questions about the timing of the indictment as Williams prepares to challenge Orleans Parish District Attorney Leon Cannizzaro for the top prosecuting role. The campaign qualifying period for the Nov. 3 election is set to end July 24. Williams has said he still plans to run for the seat, according to The Times-Picayune/The New Orleans Advocate.  A preliminary trial date for the case was set for Sept. 14.