Ford Motor has revised its full-year profit forecast downward, now expecting an operating profit of approximately $10 billion, down from the previous estimate of $10-12 billion. This adjustment comes as the automaker grapples with challenges in its electric vehicle division, costly recalls, supply chain issues, and inflationary pressures in Turkey. The company's third-quarter results revealed a mixed performance across its segments, with the EV division "Ford Model e" reporting a significant operational loss of over $1.1 billion. This news triggered a notable decline in Ford's stock price, with shares falling about 6% in pre-market trading.
Contrasting Segment Performance and Cost-Cutting Measures
While Ford's EV segment struggled, its traditional internal combustion engine division "Ford Blue" and commercial vehicle unit "Ford Pro" managed to generate profits. However, these gains were insufficient to offset the losses in the electric vehicle sector. In response to these challenges, Ford has announced plans to reduce costs in its EV segment by $1 billion. Despite an overall revenue increase of 5.5% to $46.2 billion in the third quarter, the company's net profit declined by approximately 25% year-over-year to $892 million, underscoring the ongoing difficulties in achieving profitability in the rapidly evolving electric vehicle market.
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