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Ford Predicts Profit Rebound in 2018
Ford Motor Co. expects a rebound in net profits in 2018 after declines in 2016-2017 caused by heavy investment costs in such areas as fully self-driving vehicles.
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Ford Motor Co. expects a rebound in net profits in 2018 after declines in 2016-2017 caused by heavy investment costs in such areas as fully self-driving vehicles.
Last week the company cautioned that its pretax profit this year will fall 6% to $10.2 billion, largely because of a massive recall to replace faulty door latches. But Ford says adjusted pretax profits on core operations will improve each year from 2016 through 2018, thanks to a plan to cut costs on core operations by $3 billion annually.
The guidance comes as Ford conducts an all-day meeting with analysts and investors to explain how it with both fortify its core carmaking business and expand into an emerging array of personal mobility services that include ride-sharing and crowd-sourced shuttles.
The company targets operating margins of at least 8% on its traditional operations and at least 20% on emerging businesses.
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