Ford posts weaker-than-expected profit as warranty reserves rise

By: | at 10:23 AM | Intermodal  

Ford Motor Co posted lower-than-expected first-quarter profit on Friday as the No. 2 U.S. automaker increased warranty reserves in North America for older vehicles by $400 million.

Net income fell 39 percent to $989 million, or 24 cents a share, from $1.61 billion, or 40 cents a share, in the year-earlier period.

The quarter included $400 million in additional costs for warranty reserves in North America for vehicles from as early as the 2001 model year, and $100 million in costs related to higher freight and other items due to the quarter’s harsh winter. It also included previously disclosed costs of $400 million, mostly due to the currency devaluation in Venezuela.

Excluding one-time items for European restructuring, Ford earned 25 cents a share, 6 cents below analysts’ estimates in a poll by Thomson Reuters I/B/E/S, or about the same amount as the warranty reserves.


Discussion

Be the first to comment on this article!

To avoid Spammers, we ask that you log in using your AJOT.com account. Free accounts have access to commenting.

Did you forget your password?

It happens...