Ford Lowers Profit Outlook, Citing China Weakness

By Ben Foldy 

Ford Motor Co.'s third-quarter operating profit rose 7.5%, but the company lowered its full-year profit forecast, citing continued weakness in China and tougher competition in North America, its biggest and most-profitable market.

Ford posted $1.8 billion in operating profit from July to September, buoyed by higher sales in North America and strength in its lending arm, Ford Credit.

The auto maker's earnings per share, adjusted for one-time items, was 34 cents, beating Wall Street analysts' average forecast of 26 cents.

Ford lowered its full-year outlook, expecting operating income in 2019 to range between $6.5 billion and $7 billion, down from the $7 billion to $7.5 billion that the company had projected last quarter. It expects full-year earnings per share of $1.20 to $1.32, compared to its forecast of $1.20 to $1.35 in July.

Finance chief Tim Stone said competition in trucks and sport-utility vehicles in North America -- the company's most lucrative market -- is forcing Ford to spend more on discounts and other incentives for customers. He also cited higher warranty costs and lower-than-expected sales in China, a once-booming market that in recent years has become a money loser for the Dearborn, Mich., car company.

Net income for third quarter sank to $425 million, from $991 million in the same period last year. The company attributed the decline to one-time charges related to its global restructuring efforts, including around $800 million in costs related to its joint venture with Indian company Mahindra & Mahindra Ltd.

Ford earned $37 billion in revenue, compared with $37.6 billion in the third quarter of 2018.

--Mike Colias contributed to this article.

Write to Ben Foldy at [e-mail]

(END) Dow Jones Newswires

October 23, 2019 16:40 ET (20:40 GMT)

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