Ford results fall below projections

Ford Motor 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 analysts’ projections.

Ford shares fell as much as 7 per cent in after-hours trading.

Virtually all of Ford’s second-quarter 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.

The automaker also posted a small profit in Europe and a far smaller loss in China compared with 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 slid 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.

The automaker’s ongoing restructuring includes cutting costs and overhauling its product lineup in key global markets like China and Europe. The company said Wednesday it had so far only recorded $2.2 billion of the projected $11 billion in charges it previously said it would take for the global restructuring.

Last month, Ford said it would cut 12,000 jobs, close five plants and cut shifts at other factories in Europe by the end of 2020 in an effort to return that region to profitability.

In May, the company said it would eliminate about 10% of its global salaried workforce, cutting about 7,000 jobs by the end of August.

Reuters