Ford Cuts Profit Outlook on Higher Incentive, Warranty Costs
- Automaker shaves $500 million off full-year earnings forecast
- Problematic rollout of Explorer SUV latest blow to turnaround
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Ford Motor Co. cut its full-year forecast by $500 million in the latest sign an $11 billion restructuring by Chief Executive Officer Jim Hackett will take more time before a promised payoff.
The profit warning comes after a rocky quarter for the automaker, with North American profit margins edging down due in part to plunging sales of its cash cow Explorer sport-utility vehicle following a bungled launch. That’s the latest headache for Hackett, who is aiming to reverse Ford’s fortunes by cutting thousands of jobs, refreshing an aging SUV lineup and ditching sedans.