Ford's Profit Falls 9% on Lower China Sales
July 28 2016 - 8:10AM
Dow Jones News
Ford Motor Co.'s net profit fell 9% in the second quarter amid a
modest decline in its core North American margins and a loss in
Asia Pacific due to lower sales in China, and the company tempered
its 2016 guidance due to product costs, potential slowing of U.S.
sales and Brexit concerns.
The Dearborn, Mich., auto maker reported a profit of $2 billion
in the just-ended quarter, compared with $2.2 billion in the same
year-ago period. The company said operating profit equaled 52 cents
per share, 8 cents lower than analyst expectations of 60 cents a
share.
Revenue rose 6% to $39.5 billion versus $37.3 billion a year
ago.
Ford Chief Financial Officer Bob Shanks, in an interview with
reporters Thursday morning, flagged risks to the company's 2016
guidance. He pointing to expected weaker U.S. sales in the
second-half of the year, higher costs associated with the launch of
an all-new heavy-duty truck and the impact of the U.K.'s exit from
the European Union.
Ford has forecast operating profits equal to or better than the
$10.8 billion earned in 2015.
Ford's core North American market continued to power results,
with the company posting a 11.3% operating margin for the region,
lower than the 12.2% reported in the same-period a year ago as it
increased production of a new F-150 truck, its top seller.
Write to Christina Rogers at christina.rogers@wsj.com
(END) Dow Jones Newswires
July 28, 2016 07:55 ET (11:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Ford Motor (NYSE:F)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ford Motor (NYSE:F)
Historical Stock Chart
From Apr 2023 to Apr 2024