Ford share price falls as investors shudder at recutting of pre-tax profits

 
Oliver Gill
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Ford second-quarter earnings were well ahead of consensus expectations (Source: Getty)

Shares in Ford slumped this afternoon, with better-than-expected second quarter earnings failing to soothe investor concerns about a lowering of full-year pre-tax profit forecasts.

The US motor giant revealed earnings per share of 56 cents, ahead of consensus expectations of 43 cents. And full-year earnings would be in the range of $1.65 to $1.85, well ahead of the $1.51 anticipated on Wall Street.

But the earnings boost would be down to a reduction in Ford's tax costs, finance chief Bob Shanks explained.

Shanks said annual pre-tax profits would be lower than $9bn the firm previously predicted.

Shares were down over two per cent.

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Concerns also persist among analysts regarding large discounts applied by Ford and its rivals in order to shift high volumes of unsold cars.

In his first results announcement as president and chief executive, Jim Hackett – who took over from Mark Fields in May – said the second quarter results showed the underlying health of Ford was strong.

He added: "But we have opportunity to deliver even more. The entire team is focused on improving the fitness of the business and smartly deploying our capital to improve both the top and bottom lines in the quarters ahead.”

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