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Ford Details Lower Profit Forecast
Ford Motor Co. says in a regulatory filing that its adjusted pretax profit this year is likely to drop to $9 billion from $10.4 billion in 2016, largely because of increased spending on such emerging mobility technologies as autonomous driving systems.
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Ford Motor Co. says in a regulatory filing that its adjusted pretax profit this year is likely to drop to $9 billion from $10.4 billion in 2016, largely because of increased spending on such emerging mobility technologies as autonomous driving systems.
Additional negative pressures are lower fleet sales volume, higher costs, fluctuating commodity prices and unfavorable exchange rates, according to the company. It adds that first-quarter earnings per share are likely to drop to 30-35 cents from 68 cents in the same period of 2016.
The company has been warning about a downturn for months. It also cautions that used-car prices in the U.S. are likely to continue to weaken through 2019 as more vehicles come off lease. The trend will put downward pressure on future new-car pricing.
Still, Ford predicts its spending this year will lead to an upturn in results in 2018. Chief Financial Officer Bob Shanks tells analysts and investors that the company is “starting to form some interesting points of view” as it clarifies its directional shift from carmaker to mobility provider.
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