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Ford whiffs on earnings and warns that the rest of the year will be 'weaker than normal'

Jul 28, 2016, 16:39 IST

Ford

Ford on Thursday reported second-quarter earnings that missed analysts' expectations, and said there are now risks to achieving its full-year outlook.

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The automaker reported adjusted earnings per share of $0.52, missing analysts' estimates by eight cents according to Bloomberg.

Ford said it expects a weaker-than-normal second half of the year, especially in the third quarter, due to risks ranging from China's economy to the UK's exit from the European Union.

The "company now sees risks challenging achieving guidance," Ford said in its earnings release. The "entire Ford team working to mitigate the risks," it said.

Net income fell year-on-year to $1.97 billion from $2.16 billion.

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Ford's earnings came in lighter than expected even after cheaper gas lifted sales of its trucks like its F-series. While North American revenues increased, South America was a drag due to weakness in Brazil's economy, and weaker local currencies on the continent.

In the Middle East and Africa, lower oil prices and political crises reduced wholesales.

Ford shares fell by as much as 6% in pre-market trading. They had dropped 1% this year through the market close on Wednesday.

More to come ...

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