NEW YORK ― Ford shares tumbled on Wednesday after the automaker reported lower than expected profits on higher costs connected to product launches and warranty repairs for older model vehicles.
Profits fell 4.5 percent to $1.8 billion, while revenues rose 6.3 percent to $47.8 billion.The results translated into per-share profits that lagged analyst estimates, even as Ford maintained its full-year range for estimated operating profit. Shares dropped 11.5 percent in after-hours trading.Wholesale auto sales rose compared with the year-ago period, but Ford struggled with elevated warranty costs in the second quarter.
'Our quality is improving,' Lawler said in a conference call with reporters, adding that the second-quarter warranty costs rose $700 million compared with the 2023 period.Lawler also pointed to elevated costs connected to product launches in the first half of 2024 for the new F-series pickup truck and Explorer sport utility vehicle.The company has held some vehicles for longer than expected to ensure quality, Lawler said.
Profits Tumble On Higher Costs Hitting Shares
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