Ford share price swerves after it misses profit expectations and warns over full year earnings and the impact of Brexit

Billy Bambrough
Follow Billy
The UK vote to quit the European Union will cost Ford about $200m (Source: Getty)

Ford shares have dipped ahead of the open after the US car manufacturer reported its second quarter profit missed expectations.

The poor performance was blamed on stalling markets in the US and China.

Ford posted profit of $1.97bn, or $0.49 per diluted share, versus $2.16bn or $0.54 per share a year ago.

Its earnings – excluding one-off items – came in at $0.52 per share versus analyst expectations of $0.60 per share.

Read more: Classic British marque Bristol Cars has just unveiled the Bristol Bullet

Ford shares dropped 7.9 per cent to $12.90 before the start of trading. The shares had already slipped 1.8 per cent this year.

Ford Ford | mobile image

The UK vote to quit the European Union will cost Ford about $200m in this year alone and increase to between $400m and $500m by next year, chief financial officer Bob Shank told reporters following the earnings release.

Ford’s European sales made its biggest gain since 2010, up 7.5 per cent in the first half to 718,700 vehicles. Europe pretax profit was $467m, up from $161m.

Read more: SEC investigating Tesla over failure to disclose driverless car crash

Ford isn't the first car manufacturer to warn over Brexit. General Motors said last week that so-called Brexit could cost it $400m in the second half of this year.

Ford was also forced to set aside $100m of expenses for recalls of Takata's faulty air bags.

Related articles