Ford’s 2Q profit falls on trouble in US, China

Ford Motor Co.’s net income fell 9 percent to USD2 billion in the second quarter as the company struggled with flattening U.S. sales and lower sales in China.
The profit, of 52 cents per share, compared to a profit of 54 cents per share in the April-June period year ago. That missed Wall Street’s expectation of a 60-cent profit, according to analysts polled by FactSet.
Revenue was up 6 percent to $39.5 billion, beating analysts’ expectations. Ford sold 1.7 million vehicles during the quarter, which was flat from a year ago.
Ford’s Chief Financial Officer Bob Shanks said after an unprecedented growth streak, the U.S. market is starting to plateau. Ford responded in the second quarter with increased incentive spending, which helped it match rivals’ pricing but impacted profits. AP