Ford's Lower Tax Bill Papers Over Profit Challenges for New CEO
- Loss credits drive earnings beat, boost to annual forecast
- Stale vehicle lineup a roadblock to Hackett’s turnaround bid
Ford CFO Credits Tax Team's 'Fantastic Job' in 2Q
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Ford Motor Co. used tax maneuvers to surprise Wall Street with better-than-expected earnings, patching over the challenges its new chief executive officer faces with a slowing U.S. auto market and aging model lineup.
In the first results since Jim Hackett became CEO in May, Ford delivered second quarter adjusted earnings per share of 56 cents, beating analyst estimates. The automaker used credits racked up from overseas markets that have posted losses to lower its tax bill and now expects a 15 percent tax rate for the year, half of what was projected earlier.