Ford Cuts 2024 Earnings Guidance Due To Warranty Expenses, Slow Cost-Cutting

Stubbornly high warranty expenses and slow progress in cutting costs are hampering Ford Motor Co.'s profits this year, prompting the company to lower its full-year earnings guidance, Tom Krisher reported for the Associated Press (AP).

Ford reported a net profit of $892 million from July through September, down from $1.2 billion during the same period a year earlier. I Photo: Whiteoak Ford

This caused Ford’s stock price to drop 6% in trading after the closing bell earlier in the week.

The Dearborn, Michigan-based automaker, which reported its third-quarter earnings on Monday, revealed that its net profit plunged nearly 26%, partly due to $1 billion in accounting charges related to the cancellation of a three-row electric SUV.

Ford reported a net profit of $892 million from July through September, down from $1.2 billion during the same period a year earlier.

Excluding one-time items, the company posted an adjusted pretax profit of $2.6 billion, or 49 cents per share, beating analysts' estimates of 46 cents, according to FactSet. Revenue rose 5.5% to $46.2 billion, also surpassing Wall Street expectations.

However, Ford reduced its full-year pretax income guidance to $10 billion, at the lower end of the $10 billion to $12 billion range it had projected at the end of the second quarter, worrying investors.