Latest news with #SherryHouse
Yahoo
an hour ago
- Automotive
- Yahoo
Ford says Trump tariffs to cost it about $2bn this year
Motor industry giant Ford says it expects tariffs to cost it about $2bn (£1.5bn) this year, which is more than previously expected, despite building most of its cars in America. The company says it had already paid an extra $800m in duties in the three months ending in June. It also suffered losses related to cutting an electric vehicle programme. It is the latest indication of the impact of US President Donald Trump's tariffs on major American firms and the challenges ahead as he seeks to reshape global supply chains. But Ford is seeing a less pronounced tariffs impact than some of its competitors as much of its manufacturing is in the US. Ford's finance chief Sherry House said the firm had raised its forecast for the cost of tariffs on its business because levies on Mexico and Canada, where it has facilities, have remained higher for longer than expected. She also pointed to US tariffs on imported aluminium and steel. Last week, rival carmaker General Motors said tariffs had already cost it more than $1bn, while Volkswagen put its hit at $1.5bn. Jim Farley, Ford's chief executive, said the firm is in regular contact with the White House as the company tries to secure lower tariffs, especially on vehicle parts. "We see there's a lot of upside depending on how the negotiation goes with the administration," he said. Trump has raised duties on most goods, with special tariffs targeting cars and car parts, as well as the key materials used to manufacture them. He has said the measures are intended to convince companies, in the US and abroad, to make their products in America. Ford's shares were about 1.5% lower in extended trading in New York on Wednesday after the earnings announcement. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Reuters
6 hours ago
- Automotive
- Reuters
Ford raises projected tariff hit to results, shares drop 3%
DETROIT, July 30 (Reuters) - Ford Motor (F.N), opens new tab said on Wednesday that U.S. tariffs on imported vehicles, as well as on steel and aluminum, will likely cost more than expected for the year, and the automaker's shares slid about 3% in after-market trading. Ford reported that second-quarter results took an $800-million hit from tariffs, a less pronounced impact than some of its U.S. rivals thanks to Ford's strong domestic manufacturing base. For the full year, the automaker lifted the higher range of its projected hit to gross revenues from tariffs by $500 million, to $3 billion. Ford CEO Jim Farley said the company is in daily contact with the White House, with an ultimate goal of reducing its tariff costs, especially on parts tariffs. "We see there's a lot of upside depending on how the negotiation goes with the administration," Farley said. Chief Financial Officer Sherry House said Ford raised the projection because duties on Mexico and Canada have remained higher for longer than expected. She also cited elevated levies on aluminum and steel. The Dearborn, Michigan, automaker also issued guidance for annual results on Wednesday, after suspending it in May to assess the impact of U.S. President Donald Trump's tariffs. Ford said it now plans to record full-year adjusted earnings before interest and taxes of $6.5 billion to $7.5 billion, down from its February 2025 projection of between $7 billion and $8.5 billion. For the latest quarter, the automaker reported a 21% decrease in earnings per share to 37 cents, beating LSEG analysts' expectation of 33 cents. Ford recorded a net loss for the quarter of $36 million, which it said was primarily due to special charges related to cancellation of a three-row electric SUV, and field service actions from a $570-million recall. Ford posted revenue of $50.2 billion for the quarter, up 5% from a year earlier. The automaker has clawed away market share from rivals with aggressive discounting programs and a "zero, zero, zero" campaign, which offers shoppers a $0 down payment, zero percent interest for 48 months, and zero payments for the first 90 days on most vehicles. "The substantial revenue outperformance demonstrates Ford's pricing power, but margin compression suggests underlying cost pressures remain problematic," CFRA Research analyst Garrett Nelson said in a note. Gasoline-powered vehicles notched a 15.5% increase in the quarter on the back of these deals. Hybrid offers were also popular with shoppers in the quarter. Ford said results for the quarter ending in June were $800 million lower because of Washington's tariffs. Competitor General Motors (GM.N), opens new tab reported steeper tariff headwinds, with a $1.1-billion hit for the quarter, largely from imports on its entry-level Chevrolet and Buick models made in South Korea. GM has projected a $4-billion to $5-billion tariff impact for the year, with plans to offset 30% of that expense. Ford has said it expects to offset $1 billion of its gross tariff costs. Jeep-maker Stellantis ( opens new tab said tariffs were expected to add $1.7 billion in expenses for the year. The White House did not reply to an email requesting comment on the automakers' projections. In the past, Trump has said the levies will bring manufacturing power and jobs back to the U.S. Ford boasts domestic production for around 80% of the vehicles it sells in the U.S., about 25% more than its two Detroit rivals, according to business analytics firm GlobalData's review of last year's imports. While this foundation has made it more resilient to tariffs, it still faces steep levies on aluminum, steel and copper that have rocked the industry. Additionally, executives have said that a pinched supply of rare earth magnets from China has disrupted production this quarter. Ford's EV investments and quality problems remained among its greatest challenges. Before tariffs hit, the automaker earlier this year said it expected to lose up to $5.5 billion on its EV and software business in 2025. It recorded a $1.3 billion operating loss on this segment for the quarter. Elimination of a $7,500 consumer tax credit in September is expected to additionally dampen EV sales growth. The automaker is also battling costly quality issues and an industry-topping volume of recalls. Reducing these problems has been a priority for Farley since he took on the role in 2020.
Reuters
7 hours ago
- Automotive
- Reuters
Ford raises projected tariff hit to results, shares down 4% after the bell
DETROIT, July 30 (Reuters) - Ford Motor (F.N), opens new tab said on Wednesday that U.S. tariffs on imported vehicles, as well as materials like steel and aluminum, will likely cost more than expected for the year, and the automaker's shares slid about 4% in after-market trading. Ford reported that second-quarter results took an $800 million hit from tariffs, a less pronounced impact than some of its U.S. rivals thanks to Ford's strong domestic manufacturing base. For the full year, the automaker lifted the higher range of its projected hit to gross revenues from tariffs by $500 million, to $3 billion. Chief Financial Officer Sherry House said Ford raised the projection because duties on Mexico and Canada have remained higher for longer than expected. She also cited elevated levies on aluminum and steel. The Dearborn, Michigan automaker also issued guidance for annual results on Wednesday, after suspending it in May to assess the impact of U.S. President Donald Trump's tariffs. Ford said it now plans to record full-year adjusted earnings before interest and taxes of $6.5 billion to $7.5 billion, down from its February 2025 projection of between $7.0 billion and $8.5 billion. For the latest quarter, the auto giant reported a 21% decrease in earnings per share to 37 cents, beating LSEG analysts' expectation of 33 cents. Ford recorded a net loss for the quarter of $36 million, which it said was primarily due to special charges related to cancellation of a three-row electric SUV, and field service actions from a $570 million recall. Ford posted revenue of $50.2 billion for the quarter, up 5% from a year earlier. The automaker has clawed away market share from rivals with aggressive discounting programs and a "zero, zero, zero" campaign, which offers shoppers a $0 down payment, zero percent interest for 48 months, and zero payments for the first 90 days on most vehicles. "The substantial revenue outperformance demonstrates Ford's pricing power, but margin compression suggests underlying cost pressures remain problematic," CFRA Research analyst Garrett Nelson said in a note. Gasoline-powered vehicles notched a 15.5% increase in the quarter on the back of these deals. Hybrid offers were also popular with shoppers in the quarter. Ford said results for the quarter ending in June were $800 million lower because of Washington's tariffs. Competitor General Motors (GM.N), opens new tab reported steeper tariff headwinds, with a $1.1 billion hit for the quarter, largely from imports on its entry-level Chevrolet and Buick models made in South Korea. GM has projected a $4 billion to $5 billion tariff impact for the year, with plans to offset 30% of that expense. Ford has said it expects to offset $1 billion of its gross tariff costs. Jeep-maker Stellantis ( opens new tab said tariffs were expected to add $1.7 billion in expenses for the year. The White House did not reply to an email requesting comment on the automakers' projections. In the past, Trump has said the levies will bring manufacturing power and jobs back to the U.S. Ford boasts domestic production for around 80% of the vehicles it sells in the U.S., about 25% more than its two Detroit rivals, according to business analytics firm GlobalData's review of last year's imports. While this foundation has made it more resilient to tariffs, it still faces steep levies on aluminum, steel and copper that have rocked the industry. Additionally, executives have said that a pinched supply of rare earth magnets from China has disrupted production this quarter. Ford's EV investments and quality problems remained among its greatest challenges. Before tariffs hit, the automaker earlier this year said it expected to lose up to $5.5 billion on its EV and software business in 2025. It recorded a $1.3 billion operating loss on this segment for the quarter. Elimination of a $7,500 consumer tax credit in September is expected to additionally dampen EV sales growth. The automaker is also battling costly quality issues and an industry-topping volume of recalls. Reducing these problems has been a priority for Ford CEO Jim Farley since he took on the role in 2020.
Yahoo
8 hours ago
- Automotive
- Yahoo
Ford trims full-year profit view as tariffs weigh
-- Ford Motor Company (NYSE:F) lowered its full-year earnings outlook due to a $2 billion net headwind from tariffs. Shares of the company were down 3% in aftermarket trading. The company now expects adjusted EBIT of $6.5 billion to $7.5 billion for 2025, down from its earlier range of $7 billion to $8.5 billion. The new forecast reflects a $3 billion hit from tariffs, which is partially offset by $1 billion in recovery automaker topped quarterly profit and revenue estimates on strong performance across its business segments. Second-quarter earnings came in at 37 cents per share, beating analysts' average estimate of 31 cents. Revenue rose to $50.18 billion, ahead of expectations for $45.29 billion. CEO Jim Farley said the company's Ford+ strategy along with Ford Pro and Ford Blue contributing to both revenue and margin growth. Ford Model e, the EV division, is making efficiency gains, and the company said in its earnings release that it plans to unveil more on its next-generation electric vehicles at an event in Kentucky on August 11. Ford CFO Sherry House said the company has posted its fourth consecutive quarter of year-over-year cost improvements, excluding tariff impacts, and continues to strengthen its balance sheet. Related articles Ford trims full-year profit view as tariffs weigh Apollo economist warns: AI bubble now bigger than 1990s tech mania If Powell goes, does Fed trust go with him?
Yahoo
8 hours ago
- Automotive
- Yahoo
Ford reports Q2 earnings beat but takes $800M tariff hit
Ford (F) posted an earnings and revenue beat for the second quarter, reinstated full-year guidance, but upped its full-year tariff exposure after seeing $800 million in tariff costs in Q2 alone. For the year, Ford said it now expects a "net tariff-related headwind of about $2 billion," which reflects a $3 billion gross adverse adjusted EBIT (earnings before interest and taxes) impact, partially offset by $1 billion of mitigation efforts. Ford CFO Sherry House said on a call with reporters that mitigation efforts could include higher pricing for certain vehicles or using "bonded" rail carriers between Canada and Mexico. Ford also issued new guidance, with full-year adjusted EBIT seen at $6.5 billion to $7.5 billion, which the company says now takes into account the $2 billion tariff impact. Ford also said it sees full-year adjusted free cash flow in a range of $3.5 billion to $4.5 billion, with capital expenditures of about $9 billion. Ford shares were volatile in after-hours trading, down over 4% immediately following the news. Prior to withdrawing guidance in February, the company had seen full-year adjusted EBIT guidance $7.0 billion to $8.5 billion. For the quarter, Ford reported revenue of $50.2 billion vs $44.14 billion estimated per Bloomberg consensus, up 5% compared to a year ago. Ford posted adjusted earnings per share (EPS) of $0.37 vs. $0.33 expected, on adjusted EBIT (earnings before interest and taxes) of $2.1 billion vs $1.91 billion estimated. Ford said its adjusted EBIT was impacted by $800 million in net tariff exposure in Q2. Last week Big Three rival GM (GM) reported profit dipped in Q2 as tariffs added $1.1 billion to costs. And Dodge-parent Stellantis (STLA) said on Tuesday that tariffs ate away nearly $350 million in profit in Q2, with the full-year tally expected at $1.73 billion. The impact of tariffs, as well as rising warranty costs for recalls that have plagued Ford vehicles weighed on results. For example, Ford booked a $570 million charge in Q2 related to the recall of 700,000 SUVs due to fire risk. As part of its Ford+ plan, Ford divided its business into three units: Ford Blue for the traditional gas-powered business, Ford Model e for the electric vehicle division, and Ford Pro for its commercial and super duty truck business. Ford reported the following in Q2: Ford Blue: $25.8 billion in revenue, $661 million in EBIT Model e: $2.4 billion in revenue, -$1.329 billion in EBIT Ford Pro: $18.8 billion in revenue, $2.318 billion in EBIT Look for Farley to weigh in on trade deals the Trump team struck with the UK and EU on the earnings call; Farley has said deals like those are unfair given the fact vehicles imported from Canada and Mexico, which use a high-percentage of US-made parts, are tariffed at a much higher 25%. Despite tariffs, Ford saw sales gains in Q2 as the company's employee pricing for all strategy was a huge sales mover. Ford posted Q2 US sales of 612,095 units, a 14% jump compared to a year ago and well ahead of the 1.7% estimated industry sales growth rate. Hybrid (+23%) sales for vehicles like the Maverick, and gas-powered vehicle sales (+15%) like the Bronco SUV drove the sales gains, while EV sales lagged (-31%). Speaking of EVs, commentary from executives on the outlook for business given the loss of consumer EV tax credits will be another item on the agenda. Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
