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Ford 2Q profit drops 86% as it restructures overseas

DEARBORN, Mich. (AP) — Ford's net profit tumbled 86% in the second quarter due largely to restructuring costs in Europe and South America. Net income for the April-through-June period dropped to $148 million, or 4 cents per share. Without the charges the company made 28 cents per share. Revenue was flat at $38.9 billion. On average, analysts surveyed by FactSet expected earnings 31 cents per share on revenue of $38.49 billion. Chief Financial Officer Tim Stone says the company had charges of $1.2 billion as it moved to close factories in Europe and South America. He says Ford already is seeing an impact from its global fitness measures that included a reduction of 7,000 white-collar workers. Ford, which released numbers after the markets closed Wednesday, says its results include a $181 million valuation loss on an investment in a software company, trimming 4 cents off adjusted earnings per share. Its stock fell 6.3% in after-hours trading to $9.68. Stone said Ford is in the early stages of its restructuring, but already is seeing improvement in some regions. Free cash flow also improved by 80% to $2.1 billion in the first half of the year, he said. "We're already starting to see some early benefits," he said. "A lot of work to do." The company expects improvement in the second half of the year as more new big SUVs hit dealerships and more of the restructuring takes hold. Ford on Wednesday forecast pretax adjusted earnings of $7 billion to $7.5 billion for all of 2019, compared with $7 billion last year. The company previously had only said that pretax earnings would improve. Full-year adjusted earnings per share are forecast to be $1.20 to $1.35, up from $1.30 in 2018. Previously it did not give per-share guidance. Ford's U.S. sales fell nearly 5% in the second quarter, according to the Edmunds.com auto pricing site, as the company exited most of its passenger car business. But Stone said sales of the new Ford Ranger small pickup offset much of that as its share of the small truck segment rose 14%. Edmunds, which provides content for The Associated Press, said Ford's average vehicle sale price rose 2.8% to $41,328 during the quarter. In North America, Ford's biggest profit center, pretax earnings fell 3% to just under $1.7 billion, which the company blamed on switching its Chicago factory to build new versions of midsize SUVs.

Massive Airbag Recall Affects Seven Automakers

The recall of faulty airbag inflators supplied by Takata has exploded today to grow to seven automakers. In most cases, only models in certain high-humidity regions were affected because the National Highway Traffic Safety Administration found in its investigation that moisture played a role in determining whether there would be a problem. However, some companies opted for national campaigns. The exact number of affected models for these campaigns isn't yet known at this time. BMW is recalling an undisclosed number of 325i, 325Xi, 330i and 330Xi models from the 2001 through 2005 model years and the 2001-2006 model year versions of the 325Ci and 330Ci for the driver side and passenger side inflators. Only vehicles currently registered in Florida, Puerto Rico, Hawaii and the US Virgin Islands are covered under this recall. Neither Chrysler's filing with NHTSA nor its press release list the specific models affected, but a company spokesperson told Autoblog that at this time it only covers the driver and passenger side inflators for the 2006 Dodge Charger in Florida, Puerto Rico, Hawaii and the US Virgin Islands In most cases, only models in certain high-humidity regions were affected because the NHTSA found that moisture played a roll in determining if there would be a problem. Ford is recalling an estimated 58,669 cars that include the 2005-2006 model years of the Ford GT for the driver and passenger inflators, the 2007-2007 model years of the Mustang for the driver side and 2004 Ranger for the passenger side. It covers vehicles originally sold or currently registered in, wait for it... Florida, Puerto Rico, Hawaii and the US Virgin Islands. Honda is issuing three separate recalls regarding the problem. First, the company is recalling the 2002-2003 model years Civic, CR-V and Odyssey and the 2003 model year of the Accord, Element, Pilot and Acura MDX to replace the passenger's side inflator. This covers all models nationwide. Second, Honda is repairing the passenger's side airbag inflator in the 2003-2005 Accord, Civic, CR-V, Element, Pilot, the 2003-2004 model year versions of the Odyssey, the 2003-2005 model year Acura MDX and 2005 Acura RL. However, only for vehicles located in Alabama, Florida, Georgia, Hawaii, Louisiana, Mississippi, South Carolina, Texas, Puerto Rico and the US Virgin Islands. Owners will be notified in July. Finally, Honda is separately replacing some models' driver's side inflators.

2017 Ford Super Duty trucks recalled because the fuel tank could fall off

Bad news from Dearborn. Ford just announced a pair of recalls, including a particularly worrying flaw in the new F-Series Super Duty. According to Ford's official announcement, there are roughly 8,000 of its big trucks on the roads with a missing reinforcement bracket – if it's not there, the fuel tank could separate from the frame. Yes, Ford is basically saying the fuel tank could fall out. We don't need to explain why this would be a very bad thing. Fortunately, no owners have experienced said bad things – Ford claims it's unaware of any fires, injuries, or accidents resulting from the flaws. The Kentucky Truck Plant built the affected pickups between August 10 and September 17. The bulk of the vehicles are in the US – 7,103, to be precise. Another 964 are cruising around the frozen Canadian tundra, while two more are in "federalized territories." The other recall is smaller, but reaches across a broad swath of the Blue Oval's family vehicles. Ford says there are 1,352 Taurus sedans, Flex crossovers, Explorer SUVs – including the Police Interceptor Utility variant – and Lincoln MKTs equipped with the company's 3.5-liter EcoBoost V6 that could catch fire. In this case, the danger isn't a detached fuel tank, but an "improperly brazed turbocharger oil supply tube" that could leak and spill engine oil on the turbocharger. Again, Ford isn't aware of any fires, accidents, or injuries due to the flaw. Here's the breakdown of manufacturer dates and location: 2016 Ford Taurus vehicles built at Chicago Assembly Plant, Oct. 18, 2016 to Nov. 2, 2016 2016-17 Ford Flex vehicles built at Oakville Assembly Plant, Oct. 18, 2016 to Nov. 10, 2016 2017 Ford Explorer vehicles built at Chicago Assembly Plant, Oct. 15, 2016 to Nov. 12, 2016 2017 Ford Police Interceptor Utility vehicles built at Chicago Assembly Plant on Nov. 2, 2016 2016-17 Lincoln MKT vehicles built at Oakville Assembly Plant, Oct. 18, 2016 to Nov. 10, 2016 As with the Super Duty recall, most of the affected cars, crossovers, and SUVs are in the US market. There are 126 units in Canada and six in the same "federalized territories" mentioned above. In the case of both recalls, dealers will inspect the affected parts and replace or add them as necessary. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.