Big restructuring costs hit Ford earnings
Ford reported a steep decline in second-quarter profits on Wednesday due to large restructuring costs and a disappointing earnings forecast for the year, sending shares sharply lower.
The US automaker reported profits of $148m (roughly R2bn), an 86% drop from the same period last year.
Revenues fell 0.2% to $38.9bn (roughly R539bn).
The drop reflects $1.2bn (roughly R16bn) in one-time costs connected to restructuring in Europe and Latin America that have resulted in thousands of job losses and plant closures.
The automaker reported lower car sales in China, where the overall market has slowed, and North America, where new vehicle launches crimped performance, among other areas.
The company has announced it will phase out several sedan models due to weak demand in the US for smaller cars.
On the positive side, Ford said its operating loss was smaller in China than during the same period last year. Higher pricing in North American pickup trucks and sport utility vehicles boosted operating earnings.
But Ford projected full-year profits of between $1.20 (roughly R16.65) and $1.35 (roughly R18,74) per share, below the $1.39 (roughly R19,29) expected by analysts.
Shares of Ford sank 6.3% to $9.68 (roughly R134,37) in after-hours trading.