Ford Motor Co. posted a slight increase in second-quarter net profit and lifted its full-year earnings guidance as a healthy finance arm and strong pricing on light trucks helped offset weaknesses overseas and a charge for shifts in small-car production.
The No. 2 U.S. auto maker on Wednesday reported net income of $2 billion for the just-ended quarter as strong profits in North America continued to fuel the bulk of the company's profits.
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Operating income fell 16% to $2.5 billion due to higher commodity costs, unfavorable exchange rates in China and Europe, and expenses related to the auto maker scrapping plans to build a small-car factory in Mexico.
Revenue was $39.9 billion for the April-to-June period versus $39.5 a year ago, hurt by lower global volumes, including a 3% decline in the U.S. in the second-quarter.
Ford's adjusted earnings were 56 cents per share, beating analysts' estimates of 43 cents a share. Ford Chief Financial Officer Bob Shanks attributed the beat to a lower-than-expected tax rate.
The Dearborn, Mich., auto maker also issued new full-year guidance, forecasting adjusted EPS for 2017 of $1.65 to $1.85 a share. That compares to the previous outlook of $9 billion in adjusted full-year pretax profit, or $1.58 a share.
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(END) Dow Jones Newswires
July 26, 2017 07:36 ET (11:36 GMT)