{"id":74799,"date":"2024-07-25T00:04:05","date_gmt":"2024-07-25T04:04:05","guid":{"rendered":"https:\/\/autosector.com\/?p=74799"},"modified":"2024-07-25T00:04:05","modified_gmt":"2024-07-25T04:04:05","slug":"fords-q2-adjusted-profit-falls-on-ev-hit","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=74799","title":{"rendered":"Ford’s Q2 adjusted profit falls on EV hit – Autoblog"},"content":{"rendered":"\n

Ford<\/a> Motor reported a dip in second-quarter adjusted profit on Wednesday as the automaker continues to battle costly quality issues and an EV business that is weighing on its bottom line, sending shares tumbling 12% in after-hours trading.<\/p>\n

The Detroit automaker earned an adjusted profit of 47 cents per share, significantly missing analysts’ expectations of 68 cents, according to LSEG data.<\/p>\n

Ford CEO Jim Farley has made fixing the automaker’s quality problems a priority since he took the helm in October 2020. Since then, Ford has hired a new executive director of quality and transformed some of its production practices to avoid errors, but has still topped the industry in number of recalls<\/a>.<\/p>\n

Ford’s chief financial officer, John Lawler, said most of these warranty<\/a> expenses were related to older vehicles launched before 2021. Warranty expenses went up $800 million in the second quarter compared with the previous quarter, Lawler told reporters. The CFO said field service actions in the quarter were a one-time cost increase for the older vehicles and Ford expects the second half of year to match its warranty cost expectations.<\/p>\n

The carmaker maintained its projected annual guidance of $10 billion to $12 billion in earnings before interest and taxes.<\/p>\n

Legacy<\/a> automakers have scaled down their EV ambitions amid easing demand, a shift to hybrids<\/a> and stiff competition from Tesla<\/a> and Chinese EV makers in global markets.<\/p>\n

Earlier this month it shifted plans for a Canadian assembly plant that was expected to build a three-row EV, instead saying it would produce Ford’s flagship F-150<\/a> pickups. Farley said the company was struggling to meet soaring demand for the gas guzzlers.<\/p>\n

On the battery-powered front, Farley is directing the company’s efforts to ramping up hybrid production as well as developing a platform for a lineup of affordable, smaller electric vehicles<\/a>, which Ford is doing out of its California-based “skunk works” team.<\/p>\n

Ford recorded a $1.1 billion operating loss for its electric-vehicle and software division in the second quarter, adding to its $1.3 billion loss from the first quarter. Executives expect this section of the company to sustain a pretax loss of up to $5.5 billion for the year.<\/p>\n

Crosstown rival General Motors<\/a> reported second-quarter profit and revenue on Tuesday that beat Wall Street’s expectations, buoyed by strong pricing and demand for gas-powered trucks<\/a>. The company raised its annual forecast for the second time this year. Tesla on Tuesday also reported 2Q profit that was down from the same period last year.<\/p>\n","protected":false},"excerpt":{"rendered":"

Ford Motor reported a dip in second-quarter adjusted profit on Wednesday as the automaker continues to battle costly quality issues and an EV business that is weighing on its bottom line, sending shares tumbling 12% in after-hours trading. The Detroit automaker earned an adjusted profit of 47 cents per share, significantly missing analysts’ expectations of […]<\/p>\n","protected":false},"author":1,"featured_media":74800,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[3],"tags":[],"class_list":["post-74799","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-design-concepts"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/74799","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=74799"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/74799\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/74800"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=74799"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=74799"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=74799"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}