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Ford's profit skids

Thursday, July 28, 2016 - 01:15

The automaker now sees sales falling in the U.S. in the second half, noting that the economy was ''maturing.'' Fred Katayama reports.

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Ford Motor's quarterly profit skidded sharply, and so did its stock. The automaker partly blamed unfavorable exchange rates. Revenue rose but profit fell in the U.S. because Ford paid higher incentives to drive sales. Weak results in China stemming from higher costs and a strong dollar produced its first quarterly loss in Asia in three years. And Brazil's contracting economy made the red ink redder in South America. Ford now sees its U.S. auto sales falling in the second half. And it warns results will be "weaker than normal" due to higher costs from the launch of its new Super Duty trucks. Its CFO noted that the economy was "maturing." Other risks the company cited include weakness in the U.S. and Chinese markets, the currency, and fallout from Britain's vote to quit the European Union. Sales this year have been strong for the U.S. auto industry. Buckingham analyst Joseph Amaturo is sticking with his buy rating on Ford, saying "Ford reported strong operating results in North America and Europe along with free cash flow generation." Ford's glum outlook and disappointing profit sent its stock sharply lower in early trading, deepening its nearly 2 percent loss this year.

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Ford's profit skids

Thursday, July 28, 2016 - 01:15