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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.

Surprise! More Ford and Lincoln cars found with marijuana

Ford is starting to have a serious problem on its hands. Today, ABC 7 in Detroit reported that another batch of Ford Fusion and Lincoln MKZ cars were found packed with 227 pounds of marijuana. This is a little over a week after Fords in Ohio were found stuffed with marijuana and only about two months after Fords in Minnesota were found full of weed. All of the cars traveled on train from Mexico to their destination. All in, several thousand pounds and several million dollars worth of marijuana has been discovered. According to the report, Immigration and Customs Enforcement found the cars at the Ford Rail Distribution Facility in Woodhaven, Michigan, just south of Ford's world headquarters in Dearborn. ICE became involved after a Ford employee reported the cars to Woodhaven police. It's unclear when and where the cars were packed with marijuana. With the cars in Minnesota, it's believed that the weed was added after leaving the factory but before being loaded on the train. Spare tires were removed and the space was used to smuggle the marijuana. Related Video:

Hennessey’s 600-hp Lincoln Navigator is here

The tuners at Hennessey have begun deliveries of the 2018 Lincoln Navigator HPE600, a full-size SUV that boosts the Navigator's normal 450-horsepower output to 600 hp, announcing its arrival with a video showing the performance 'ute riding a dynamometer. Hennessey said it was a natural decision to turn to the Navigator because it has mostly the same 3.5-liter twin-turbo V6 engine as the F-150 Raptor, which it converted last year to the 602-hp 6x6 VelociRaptor. So it added engine management computer software upgrades, a stainless steel exhaust system, high-flow air induction and large front-mounted intercooler with blow-off valve. Dyno results in the video show the Navigator topping out at around 500 hp and 500 pound-feet of torque at around 3,800 rpm at the wheels; Hennessey says the 600 hp comes at 6000 rpm. The upgrades are good to take the nearly three-ton SUV from 0-60 mph in 4.8 seconds, about 0.7 seconds quicker than the standard Navigator, and run the quarter mile in 12.9 seconds at 107 mph. The tuning package will set you back $19,950, including installation. Additional options include 22-inch forged monoblock wheels, lowered suspension and Brembo brakes with six-piston calipers and 15.1-inch brake rotors. There are also HPE600 badges on the front door jambs and tailgate, and embroidered headrests. It comes with a three-year, 36,000-mile warranty. Just 200 are planned for the 2018 model. You can order it now through Hennessey or any authorized Hennessey Lincoln dealer. Related Video: Image Credit: Hennessey Lincoln SUV Luxury Performance Hennessey tuner lincoln navigator tuning