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Ford 2Q profit drops 86% as it restructures overseas

DEARBORN, Mich. (AP) — Ford's net profit tumbled 86% in the second quarter due largely to restructuring costs in Europe and South America. Net income for the April-through-June period dropped to $148 million, or 4 cents per share. Without the charges the company made 28 cents per share. Revenue was flat at $38.9 billion. On average, analysts surveyed by FactSet expected earnings 31 cents per share on revenue of $38.49 billion. Chief Financial Officer Tim Stone says the company had charges of $1.2 billion as it moved to close factories in Europe and South America. He says Ford already is seeing an impact from its global fitness measures that included a reduction of 7,000 white-collar workers. Ford, which released numbers after the markets closed Wednesday, says its results include a $181 million valuation loss on an investment in a software company, trimming 4 cents off adjusted earnings per share. Its stock fell 6.3% in after-hours trading to $9.68. Stone said Ford is in the early stages of its restructuring, but already is seeing improvement in some regions. Free cash flow also improved by 80% to $2.1 billion in the first half of the year, he said. "We're already starting to see some early benefits," he said. "A lot of work to do." The company expects improvement in the second half of the year as more new big SUVs hit dealerships and more of the restructuring takes hold. Ford on Wednesday forecast pretax adjusted earnings of $7 billion to $7.5 billion for all of 2019, compared with $7 billion last year. The company previously had only said that pretax earnings would improve. Full-year adjusted earnings per share are forecast to be $1.20 to $1.35, up from $1.30 in 2018. Previously it did not give per-share guidance. Ford's U.S. sales fell nearly 5% in the second quarter, according to the Edmunds.com auto pricing site, as the company exited most of its passenger car business. But Stone said sales of the new Ford Ranger small pickup offset much of that as its share of the small truck segment rose 14%. Edmunds, which provides content for The Associated Press, said Ford's average vehicle sale price rose 2.8% to $41,328 during the quarter. In North America, Ford's biggest profit center, pretax earnings fell 3% to just under $1.7 billion, which the company blamed on switching its Chicago factory to build new versions of midsize SUVs.

Lincoln says MKZ supply crisis over

After an excessive number of recalls on the 2013 Escape and Fusion, we can't really fault Ford for being a little extra cautious with the launch of the 2013 Lincoln MKZ. Last month, we reported that dealer supply of the car was extremely limited due to more attention being paid to quality checks of cars rolling off the assembly line, which led to a 73-percent drop in MKZ sales from last year on top of a 32-year low in monthly sales for Lincoln in January.
The reason for the delay was that the sedans were being shipped from the Hermosillo, Mexico assembly plant to be inspected even closer at Ford's Flat Rock, Michigan plant before they were able to head to dealers. Things seem to be straightening out for Lincoln and the MKZ's production now, as Automotive News is reporting that supply should be up to a "normal level" by the end of this month.

2022 Lincoln Aviator MSRP discounted from $5 to $1,085

Price changes continue apace over at Lincoln. The 2022 Navigator received price boosts from the single figure to four figures, the 2022 Corsair came down in price by anywhere from three to four figures. The penultimate crossover in the four-strong lineup, the Aviator, gets one price increase of $105 to go along with discounts ranging from $105 to almost $1,100. As with the Navigator and Corsair, though, the Aviator's destination price is up by $100, from $1,095 to $1,195, trimming those discounts slightly. Prices for the new Aviator and the changes from the last 2021 pricing are: RWD Standard: $52,660 ($5 less) Reserve: $58,550 ($130 less) AWD Standard: $55,160 ($5 less) Reserve: $61,080 ($110 less) Grand Touring: $69.555 ($1.085 less) Black Label: $80,545 ($105) Black Label Grand Touring: $89,100 ($980 less) Another pricing quirk is that AWD has got more expensive on the Reserve trim. Sending power to the front wheels cost $2,510 in 2021, now it costs $2,530.  The Aviator doesn't appear to pair the price drops with punishments. The only big change for the 2022 model is former Monochromatic Package being given even more black-out trim and a name change to the Jet Package. The Monochromatic Package left bits of chrome on the car, such as the grille surround, fender badges, and window surrounds. The Jet Package abolishes those shiny bits in favor of gloss black trim. The body-colored mirrors also go black, as do the grille centers and the 22-inch wheels. It's meant to be available early this year, but at the time of writing, it's still not on the Lincoln configurator. When it does arrive, it can be optioned with the exterior colors Infinite Black, Pristine White, Silver Radiance, and Burgundy Velvet. The Monochromatic Package cost $2,000, the Jet Package will likely push that number up a bit. Ford Authority reports that Ford engineers have also reduced the latest Aviator's tow rating from 6,700 pounds with the Class IV Trailer Tow Package to 5,600 pounds. That package is standard on the Black Label Grand Touring trim, a cost option on other trims. The 2022 model isn't long for this world, GMA saying the 2023 enters production on May 30th.  Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.