DEARBORN, Mich. (Reuters) – Ford Motor Co <F.N> on Wednesday posted a lower quarterly profit as it took charges for its global restructuring, and reduced its full-year operating profit forecast due to higher warranty and incentive costs, as well as lower-than-expected sales in China.
The No. 2 U.S. automaker reported a third-quarter net profit of $425 million (£329.84 million), or 11 cents a share, compared with $991 million, or 25 cents a share, a year earlier. The quarter included $1.5 billion in special charges, mostly for its global restructuring that included the formation of its Indian joint venture with Mahindra & Mahindra.
Excluding one-time charges, Ford earned 34 cents a share, above the 26 cents analysts had expected according to IBES data from Refinitiv.
Revenue in the quarter fell 2% to $37 billion, above the $33.98 billion expected.
Virtually all of Ford’s third-quarter pretax profit came from North America – its most lucrative market – where highly profitable pickup trucks drive margins for the Dearborn, Michigan-based automaker and its Detroit rivals, General Motors Co <GM.N> and Fiat Chrysler Automobiles NV. <FCHA.MI>
Ford said on Wednesday it now expects full-year adjusted operating profit in the range of $6.5 billion to $7 billion, compared with $7 billion last year. In July, it had forecast it would increase, ending in the range of $7 billion to $7.5 billion.
Ford also said it expects adjusted earnings this year in the range of $1.20 to $1.32 a share. Previously, the high end of its forecast had been $1.35.
(Reporting by Ben Klayman in Dearborn, Mich.; Editing by Matthew Lewis)