Ford profit hit by restructuring, gives low '19 forecast

By Nick Carey and Ben Klayman DETROIT (Reuters) - Ford Motor Co on Wednesday reported a lower-than-expected profit, weighed down by charges to restructure its units in Europe and South America, and the automaker gave a full-year earnings forecast that fell short of analyst expectations. Virtually all of Ford's pre-tax profit came from North America, its most lucrative market, where highly-profitable pickup trucks drive margins for the Dearborn, Michigan-based automaker and its Detroit rivals General Motors Co and Fiat Chrysler Automobiles NV

Reuters July 25, 2019 02:09:53 IST
Ford profit hit by restructuring, gives low '19 forecast

Ford profit hit by restructuring gives low 19 forecast

By Nick Carey and Ben Klayman

DETROIT (Reuters) - Ford Motor Co on Wednesday reported a lower-than-expected profit, weighed down by charges to restructure its units in Europe and South America, and the automaker gave a full-year earnings forecast that fell short of analyst expectations.

Virtually all of Ford's pre-tax profit came from North America, its most lucrative market, where highly-profitable pickup trucks drive margins for the Dearborn, Michigan-based automaker and its Detroit rivals General Motors Co and Fiat Chrysler Automobiles NV .

The automaker also posted a small profit in Europe and a far smaller loss in China versus the second quarter of 2018 as better pricing and new luxury models helped offset a poor performance in that market.

Ford's second-quarter sales in China fell 21.7% in the second quarter after a first-quarter drop of 35.8%.

In April, Ford said it planned to launch more than 30 new models over the next three years to overhaul its vehicle lineup in China.

Ford had previously not provided an earnings forecast for this year. The company said on Wednesday it expects full-year earnings between $1.20 and $1.35 per share. Analysts have estimated the automaker will earn $1.39 per share this year, according to IBES data from Refinitiv.

Speaking to reporters, Chief Financial Officer Tim Stone said the company now expects adjusted 2019 pre-tax profit of up to $7.5 billion, compared with $7 billion in 2018.

"We have a long way to go ... to execute on our redesign," Stone said. "We have a lot of work to do."

The No. 2 U.S. automaker posted a second-quarter net profit of $148 million, or 4 cents per share, down from $1.1 billion, or 27 cents per share, a year earlier.

Excluding one-time charges, the company earned 28 cents per share. Analysts had expected Ford to earn 31 cents a share.

Excluding a write-down of its stake in a software company, Ford said it would have earned 32 cents per share.

Revenue was flat at $38.9 billion, above the $35.07 billion analysts had expected.

(Reporting By Nick Carey; Editing by Nick Zieminski)

This story has not been edited by Firstpost staff and is generated by auto-feed.

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