Ford's earnings were even worse than expected, and its stock is plummeting - Business Insider

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Ford's earnings were even worse than expected, and its stock is plummeting

Ford on Tuesday reported fourth quarter 2019 financial results that missed Wall Street expectations. Executives blamed lower sales and future investments for the large miss. Ford on Tuesday posted a fourth-quarter loss and provided a weaker-than-expected 2020 forecast due to continued higher warranty costs, lower vehicle volumes, lower results from Ford Credit and higher investment in future transportation.

The No. 2 U.S. automaker, struggling to complete a long-running restructuring and faced with continued losses in China, said it expects 2020 operating earnings in the range of 94 cents to $1.20 a share, below the $1.26 analysts were expecting, according to IBES data from Refinitiv. For the fourth quarter of 2019, Ford reported a net loss of $1.7 billion, or 42 cents a share, compared with a loss of $100 million, or 3 cents a share, a year earlier.

The quarter included a loss of $2.2 billion due to higher contributions to its employee pension plans, something it disclosed last month. Excluding one-time charges, Ford earned 12 cents a share, three cents below what analysts had expected.Get the latest Ford stock price

 

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