Ford's Profit Tanked But It Still Managed to Beat Wall Street Estimates

Apr 30, 2017, 01:14
Ford's Profit Tanked But It Still Managed to Beat Wall Street Estimates

Earnings per share for Ford were 39 cents in comparison to 36 cents that Wall Street was expecting.

Ford expects commodity costs to be around $1 billion higher this year.

The Dearborn, Michigan-based automaker saw its net income fall by 35% to US$1.6bn, with adjusted pre-tax profit coming in at US$2.2bn and earnings per share of US$0.39, above market expectations for US$0.35 per share.

Higher costs had been created by an increase of $467 million in warranty costs, an increase of $176 million in costs of commodities and an increase of $253 million in costs to launch new products.

Across January, February and March, Ford earned $1.6 billion in profit, significantly less than the $2.4 billion it earned in the record-setting first quarter of 2016. ( F ) reported Thursday lower profit in its first quarter, while revenues increased from past year.

First-quarter revenue increased to $US39.1 billion compared with $US37.7 billion for the same period a year ago.

Ford delivered 1.7-million vehicles globally in the first quarter, while Daimler delivered 754,300, of which 568,100 were Mercedes-Benz cars.

By Comcast [Public domain], via Wikimedia CommonsComcast said adjusted EBITDA rose 10.4% year over year to $7 billion, while consolidated net income attributable to Comcast rose 20.2% to $2.6 billion.

Raikkonen fastest in 1st practice for Russian Grand Prix
Hamilton missed out on the title in his first season in Formula One in 2007 when he was at McLaren alongside Fernando Alonso. Vettel, whose 2016 campaign was his second in three years without a win, told F1's official website in an interview .

National Prescription Drug Take-Back Day set for April 29
In 12 previous Take Back events, the DEA and its Northern California partners accepted almost 350,000 pounds of unused medication. Since the program began in 2010, more than 50 tons of unwanted medications have been collected and destroyed in Kansas alone.

Arkansas Kills Two Men In "Inhumane" Double Execution
The inmates's lawyers fought for reprieves up to the last minute, but their final appeals were rejected by the courts. This urgency is being brought about by the fact that one of the 3 drugs that midazolam will be expiring on April 30.

Ford, along with all automakers, faces a USA automotive industry where sales are beginning to stall after a seven-year period of growth and record sales.

Now, amid plateauing US auto sales and heavy discounting across the industry, the vehicle maker is struggling to keep its profit momentum going. Ford said it had 14.1% of the North American market, down 0.5 points from past year.

Revenue during the quarter grew 3.79 percent to $39,146 million from $37,718 million in the previous year period.

According to the company, lower profit was driven by higher cost, lower volume and unfavorable exchange.

Cash flow from financing activities was $1,120 million for the quarter, down 73.83 percent or $3,159 million, when compared with the a year ago period.

"If the US holds up, management's expectation of the first quarter being the weakest could certainly turn out to be true", he said. Ford singled out its Lincoln division, F-150 and Super Duty as contributing to higher transaction prices in the US market and helping to deliver a still-healthy profit.

"Tesla is just all about the long-term potential of the company", David Whiston, an analyst with Morningstar Inc.in Chicago, said by phone ahead of Ford's earnings release.

YOU MIGHT ALSO LIKE
  • Beloved 600-year-old white oak tree takes final bow

    Beloved 600-year-old white oak tree takes final bow

    But its legacy will live on - a new white oak tree grown from the old tree's acorns was recently planted at the church. The old tree, declared dead last summer after it failed to sprout foliage, is scheduled to be chopped down soon.

    North Korea hails 'largest ever' firing drill

    North Korea has ambitions to build a nuclear-tipped missile capable of reaching the USA mainland. The official China Daily newspaper said it was time to step back from harsh rhetoric.
    Trump picks acting Customs chief as Secret Service director

    Trump picks acting Customs chief as Secret Service director

    Clancy returned to his retirement in March, allowing President Donald Trump the opportunity to fill the post as he sees fit. The position is directly appointed by the president, meaning Alles will not require Senate confirmation.
  • The People's Climate March Is About More Than Just The Environment

    The People's Climate March Is About More Than Just The Environment

    The People's Climate March is a little different, mainly because it exclusively focuses on climate science and climate change. Celebrities, including Leonardo DiCaprio and former Vice President Al Gore, are expected to march as well.
    French Rugby League Player Punches Ref Unconscious, Faces Lifetime Ban

    French Rugby League Player Punches Ref Unconscious, Faces Lifetime Ban

    Referee Benjamin Casty was rushed to hospital after the incident and is believed to have suffered a broken jaw. A French rugby league referee was left floored last weekend after a sickening punch from a player.
    Sawmill Fire Spreads Overnight Above Green Valley, Arizona

    Sawmill Fire Spreads Overnight Above Green Valley, Arizona

    An evacuation order remained in place for Rain Valley, about two miles west of the intersection of highways 90 and 82. The fire is still under investigation even though fire officials have determined it was human-caused.
  • India, Cyprus call for decisive action those nation supporting 'violence factories'

    India, Cyprus call for decisive action those nation supporting 'violence factories'

    Nicos Anastasiades, particularly its return to a positive rate of growth - which was among the fastest in the European Union. The two sides signed an executive program on culture, education and scientific cooperation for the years 2017 to 2020.
    Chris Soules called 911 and attended to victim before fleeing accident scene

    Chris Soules called 911 and attended to victim before fleeing accident scene

    Court documents show police found alcohol containers in the pickup truck Soules was allegedly driving in a fatal crash. Meanwhile, a video in possession of the court features Soules being rather unwilling to cooperate with authorities.

    BSNL unveils cheap data plan, offers 270GB data for Rs 333

    Under its Rs. 399 recharge pack, Airtel is offering 1GB of 4G data per day along with free voice calls to any network for 70 days. Under the Rs. 244 recharge, users will get 1 GB of 4G data per day for 70 days without any restriction on usage timing.
  • Steelers wide receivers talk job security over Twitter

    Steelers wide receivers talk job security over Twitter

    If Martavis Bryant faces any further complications, Smith-Schuster has the talent to lay claim to the WR2 role in Pittsburgh . Immediately after the pick, Bryant said on Twitter that Smith-Shuster would replace Coates and not him in the lineup.
    Apple in talks to launch money-transfer service: Recode

    Apple in talks to launch money-transfer service: Recode

    Once source familiar with the plans told Recode that the tech giant will announce its own service later this year. It will have all the money transfer features along with the money storage aspect that Apple Pay didn't have.
    Aubameyang & Dembele Send Bayern Crashing Out Of DFB Pokal

    Aubameyang & Dembele Send Bayern Crashing Out Of DFB Pokal

    "We came from 2-1 down and still won - that's insane ", beamed Tuchel. "This is the biggest moment of my career with Dortmund ". That paved the way for the French teenager to hit the victor with a curling left-foot shot to break Bayern's hearts.
popular