ZCZC
BCN-39
US-FORD-AUTO-EARNINGS LEAD
Ford forecasts Q4 $112 mn loss
DETROIT, Jan 16, 2019 (BSS/AFP) – Ford said Wednesday it expects to post a
$112 million loss in the fourth quarter of 2018 as it restructures in the
United States and Europe.
The second biggest US automaker said it will still post a profit after
charges stemming from the drive to cut $11 billion in costs, financial
documents showed.
The adjusted profit per share is set to be 30 cents during this period,
less than the 32 cents anticipated by the markets.
Across all of 2018, Ford will post a net profit of $3.7 billion, half the
2017 result.
Adjusted earnings per share are expected to be $1.30 across the year, right
at the lower end of its $1.30-1.50 estimate in October.
The figures were released just a day after the automaker announced a global
alliance with Germany’s Volkswagen to build commercial vans and pickups
starting in 2022, though the deal does not involve cross-ownership.
The tie-up follows others in the auto industry, which is facing rising
costs amid the drive to develop new technologies, as well as changing
consumer preferences.
For more than six months, the American and German auto giants had been
talking about an alliance, including potential cooperation on autonomous and
electrification technologies for cars of the future.
But they have only been able to hash out an agreement on commercial
vehicles for now.
Ford is aiming to post better financial results this year than last, but
warned that Brexit, tariffs, currency fluctuations, salary negotiations and
the health of the Chinese and European economies will have an impact.
BSS/AFP/SR/2000 HRS