Monday , August 2 2021

Ford overtakes expectations in the first quarter, optimistic for 2019, the action flames

On Thursday, Ford announced better-than-expected quarterly returns to profits in Europe, one of the regions hit by a major restructuring involving thousands of job cuts and closures.

The group is also optimistic for 2019, saying it expects better profits than in 2018, which has led to a jump of more than 9% of Wall Street's e-commerce share.

The US automaker reported net profit of $ 1.1 billion in the first quarter, which is 34% less due to restructuring costs of $ 592 million.

However, adjusted earnings per share are 44 cents, well above the average of 27 cents expected by financial analysts.

The blue oval brand has attributed its earnings drive to this leverage since the February announcement of the South American heavy truck market and the repositioning of its European operations.

It will cut 5,000 jobs in Germany in the form of voluntary diversions and has shut down three of its four plants in Russia to be restricted to commercial vehicles on this market, which is struggling to recover from the collapse in 2012-2016 .

The current restructuring aims to save a total of $ 25.5 billion by 2022, which will include the cessation of compact cars (sedans and urban cars) in North America, plant closures and thousands of job cuts in Europe.

The quarterly turnover declined by 3.85% to 40.3 billion dollars, compared to 37.08 billion dollars, expected on average by the markets.

While sales in the group fell 48% in the first quarter, the rise in prices for large cars (pickups and SUVs or SUVs) allowed him to limit the damage, explained the Dearborn group (north).

"This quarter is a really good start of the year," said Bob Shanks, Chief Financial Officer, who is also optimistic about the year.

"We are on track for better performance in 2019 than last year," he added.

Many signals were positive: Ford was able to wash its dirt from the range by releasing new models including Ranger and Super Duty pickups and SUV Explorer and Escape.

Europe has earned $ 57 million in operating profit compared to a loss of $ 62 million a year, and profits rose to $ 2.2 billion in North America from just $ 300 million in the first quarter of 2018


Source link