Ford Lowers Profit Outlook, Citing China Weakness
October 23 2019 - 4:55PM
Dow Jones News
By Ben Foldy
Ford Motor Co.'s third-quarter operating profit rose 7.5%, but
the company lowered its full-year profit forecast, citing continued
weakness in China and tougher competition in North America, its
biggest and most-profitable market.
Ford posted $1.8 billion in operating profit from July to
September, buoyed by higher sales in North America and strength in
its lending arm, Ford Credit.
The auto maker's earnings per share, adjusted for one-time
items, was 34 cents, beating Wall Street analysts' average forecast
of 26 cents.
Ford lowered its full-year outlook, expecting operating income
in 2019 to range between $6.5 billion and $7 billion, down from the
$7 billion to $7.5 billion that the company had projected last
quarter. It expects full-year earnings per share of $1.20 to $1.32,
compared to its forecast of $1.20 to $1.35 in July.
Finance chief Tim Stone said competition in trucks and
sport-utility vehicles in North America -- the company's most
lucrative market -- is forcing Ford to spend more on discounts and
other incentives for customers. He also cited higher warranty costs
and lower-than-expected sales in China, a once-booming market that
in recent years has become a money loser for the Dearborn, Mich.,
car company.
Net income for third quarter sank to $425 million, from $991
million in the same period last year. The company attributed the
decline to one-time charges related to its global restructuring
efforts, including around $800 million in costs related to its
joint venture with Indian company Mahindra & Mahindra Ltd.
Ford earned $37 billion in revenue, compared with $37.6 billion
in the third quarter of 2018.
--Mike Colias contributed to this article.
Write to Ben Foldy at Ben.Foldy@wsj.com
(END) Dow Jones Newswires
October 23, 2019 16:40 ET (20:40 GMT)
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