By Mike Colias 

Ford Motor Co. said fourth-quarter operating income sank by two-thirds, and it issued a lower-than-expected profit outlook for 2020, the latest signs of trouble for Chief Executive Jim Hackett's turnaround plan.

Ford said operating income for the October-to-December period was $485 million, down from $1.5 billion a year earlier. Earnings per share adjusted for one-time items were 12 cents, well short of analysts' estimate of 17 cents a share.

Ford pinned the shortfall in part on lower production volumes in North America stemming from problems with launches of key models, including the redesigned Explorer and Escape sport-utility vehicles and its Super Duty pickup truck. It also cited higher warranty costs and a bonus payout to United Auto Workers that totaled about $600 million.

Ford booked a net loss of about $1.7 billion for the quarter which it attributed to losses from higher contributions to its pension plans overseas. Revenue fell 5%, to $39.7 billion.

The auto maker forecast earnings per share this year in the range of 94 cents to $1.20, lower than the average estimate of $1.30, according to S&P Global Market Intelligence.

Write to Mike Colias at Mike.Colias@wsj.com

 

(END) Dow Jones Newswires

February 04, 2020 16:31 ET (21:31 GMT)

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