Automaker Ford beats on quarterly profit but weakens outlook
2024.10.28 17:02
By Nora Eckert and Nathan Gomes
(Reuters) -Ford Motor beat Wall Street’s expectations for third-quarter earnings on Monday, but said it expects to meet just the lower end of its full-year guidance for earnings before interest and taxes.
Ford (NYSE:) said it expects to earn about $10 billion this year, instead of its prior range of $10 billion to $12 billion.
The company reported third-quarter net income of $900 million, or 22 cents per share, hurt by a $1-billion charge it took on cancelling production of a three-row electric SUV in August. Ford’s shares fell about 3% in after-hours trading.
On an adjusted basis, Ford reported quarterly profit of 49 cents per share, compared to analysts’ average estimate of 47 cents, according to data compiled by LSEG.
Ford CEO Jim Farley has made tough decisions about the company’s electric-vehicle lineup as competition from Tesla (NASDAQ:) and Chinese automakers has intensified over the past year. Ford cancelled the highly-anticipated three-row EV, which it dubbed a “personal bullet train,” saying the vehicle could no longer be profitable in the timeline required.
Company executives have said that new vehicles need to be profitable within 12 months of launch to make its battery-powered business sustainable.
The automaker’s stock is down about 6% this year, falling less than Jeep-maker Stellantis (NYSE:)’ 40% decline as the latter struggles with slowing sales and profits in North America and announces management shuffling.
The strongest of the Big Three this year has been General Motors (NYSE:). Its shares are up about 47% this year on consistently increased guidance. GM beat Wall Street’s expectations when it reported third-quarter results last week.
