{"id":140548,"date":"2019-10-23T17:38:29","date_gmt":"2019-10-23T21:38:29","guid":{"rendered":"https:\/\/www.thedetroitbureau.com\/?p=140548"},"modified":"2019-10-23T18:05:27","modified_gmt":"2019-10-23T22:05:27","slug":"ford-sees-profits-fall-by-more-than-half-in-third-quarter","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2019\/10\/ford-sees-profits-fall-by-more-than-half-in-third-quarter\/","title":{"rendered":"Ford Sees Profits Fall By More Than Half in Third Quarter"},"content":{"rendered":"
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Ford CEO Jim Hackett said the company’s global redesign resulted in a stronger company but they have “more work to do.”<\/figcaption><\/figure>\n

Ford Motor Co. reported its net income was cut by more than half in the third quarter, dropping to $425 million from $1 billion in the same three-month period in 2018.<\/p>\n

The company\u2019s margins also declined to 1.1% from 2.6% in the third quarter a year ago. A decline in per-share earnings to 11 cents was primarily attributable to charges for special items associated with the company\u2019s strategic Global Redesign, the company said in its quarterly financial report.<\/p>\n

\u201cOur Global Redesign is about making choices to transform our organization, to become the world\u2019s most trusted company and a clear leader in an era of rapid change,\u201d said Jim Hackett, Ford president and chief executive officer.<\/p>\n

<\/p>\n

\u201cWe are getting stronger today and we have more work to do,\u201d said Hackett.<\/p>\n

Hackett noted Ford opened a new customer-contact center in Houston to develop even closer relationships with U.S. owners of Ford vehicles.<\/p>\n

\u201dBusiness-unit highlights during the quarter included an ongoing product renewal in North America, where all-new Ford Explorer and Escape and Lincoln Aviator and Corsair models will soon be followed by a new F-Series Super Duty with best-in-class diesel towing, diesel and gas power and torque, and payload; a new F-150; an innovative, Mustang-inspired battery-electric vehicle; and the return of the Bronco,\u201d he said.<\/p>\n

Reported revenue for the third quarter was $37 billion, down 2% from the prior year, largely as a result of currency exchange issues.\u00a0Special items in the quarter included charges related to the proposed creation of a joint venture in India with Mahindra & Mahindra.<\/p>\n

 <\/p>\n

Cash flow from operating activities was $4.7 billion, down 9% compared with the same period last year. Adjusted free cash flow for the quarter was $207 million.<\/p>\n

Adjusted EBIT in the quarter increased 8% to $1.8 billion. The higher operating results were attributable to mark-to-market investment gains; improvement in the company\u2019s businesses in North America, Europe and China; and another strong performance by Ford Credit.<\/p>\n

Adjusted per-share earnings for the third quarter were 34 cents.\u00a0For the year to date, adjusted free cash flow was up 80%. EBIT from Ford\u2019s Automotive business for the first nine months of the year increased 10%.<\/p>\n

However, despite touting improved performance in Europe and China, the company sees a tough time in the fourth quarter. The company is now expecting higher warranty costs, higher than planned incentives in North America, and lower volumes in China.<\/p>\n

 <\/p>\n

As a result, Ford lowered its guidance for full-year company adjusted EBIT to between $6.5 billion and $7 billion, compared with $7 billion in 2018. Full-year adjusted EPS is now expected to fall between $1.20 and $1.32, versus $1.30 in 2018, with an adjusted effective tax rate of around 12 to 13%.<\/p>\n","protected":false},"excerpt":{"rendered":"

Ford Motor Co. reported its net income was cut by more than half in the third quarter, dropping to $425 million from $1 billion in the same three-month period in 2018. The company is expecting a tough final quarter and revised its full-year guidance downward as a result. See details at TheDetroitBureau.com.<\/p>\n","protected":false},"author":20009,"featured_media":136557,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[7,8,5,13],"tags":[],"make":[56],"post-state":[],"category_old":[118,286,150,151,123,287,173,289,299,248,132,284,125,121,139,290,288],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/140548"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/20009"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=140548"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/140548\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/136557"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=140548"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=140548"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=140548"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=140548"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=140548"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=140548"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}