Ford Q2 Profit Down, Cuts FY Outlook; Shares Slip

(RTTNews) - Auto giant Ford Motor Co. (F), Wednesday reported a second-quarter profit that nearly halved, hurt largely by weakness in Asia and Europe. The company lowered its full year outlook, sending its shares down by 5 percent in extended trading session.

Dearborn, Michigan-based Ford's second-quarter profit nearly halved to $1.07 billion or $0.27 per share from $2.05 billion or $0.51 per share last year.

On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.31 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter dropped to $38.33 billion from $39.85 billion in the same period last year. Analysts expected revenue of $35.83 billion for the quarter.

"This quarter we achieved solid results in North America, offset in part by unexpected challenges with our overseas operations and headwinds in the business environment," said Jim Hackett, president and CEO.

"Despite this, our fitness actions continue to take hold and we're clearly committed to redesigning and restructuring the underperforming parts of our business."

Ford, which is the second-largest U.S. automaker, expects to record up $11 billion in charges over the next three to five years related to its ongoing plans to redesign and restructure its business.

Ford said its North America business remains strong, with F-Series sales topping 236,000 units in the second quarter. However, production was impacted by a fire at Meridian Magnesium Products of America.

Ford said it was challenging quarter for Asia Pacific and Europe segments. The company plans to focus more on China. Ford plans to launch new products to Chinese market, "with 60 percent of the line-up being refreshed or new by the end of 2019."

However, due to weakness in Asia Pacific and Europe regions Ford lowered its guidance for full year 2018. The company now expects adjusted earnings of $1.30 to $1.50 per share, down from prior forecast of $1.45 to $1.70 a share. Analysts currently estimates earnings of $1.52 per share for the year.

F closed Wednesday's trading at $10.52, down $0.05 or 0.47%, on the NYSE. The stock further slipped $0.50 or 4.71% in the after-hours trading.