Ford cuts 2017 profit forecast for credit arm
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
A Ford logo is seen on a wall of the Oakville Assembly Plant as workers with UNIFOR attended a ratification vote nearby, in Oakville, Ontario, Canada November 6, 2016. REUTERS/Chris Helgren
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
(Reuters) - Ford Motor Co (NYSE: F) on Thursday lowered the 2017 pretax profit forecast for its financial services arm by $300 million due to lower auction values for used vehicles in the United States.
The company now expects Ford Credit to record a pretax profit of about $1.5 billion in 2017.
Ford affirmed that it expects full company pretax profit in 2017 to be down from 2016, and to improve in 2018. In September, Ford lowered its forecast for pretax profit this year by $600 million to $10.2 billion.
Ford expects its core automotive business to improve in 2017 and 2018. The full company's pretax profit will be down in 2017, it reaffirmed, due to investment in three areas of the business: electrified vehicles, self-driving vehicles, and shared mobility such as ride-sharing.
Bob Shanks, Ford's chief financial officer, told industry analysts in New York on Thursday that Ford is not changing its investment plans in electric and hybrid-electric vehicles because of expected changes to U.S. regulations in a Donald Trump administration.
Shanks also said it was too early to assess the impact of Trump's election on the No. 2 U.S. automaker.
During the campaign, Trump targeted Ford as an example of U.S. companies moving jobs to Mexico.
Ford, which earlier had said the greatest declines in used vehicle auction values were for small cars, said the trend of significant declines had now spread over more of its product lineup.
Ford shares were down 0.8 percent at $11.90 in afternoon trading.
(Reporting by Ankit Ajmera in Bengaluru and Bernie Woodall in Detroit; Editing by Jeffrey Benkoe and Andrea Ricci)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Ford Tops Industry for U.S. Patents Granted in 2016; Employees Set New Record for Annual Number of Inventions
- Turkish air strikes kill 19 Kurdish militants in north Iraq - military sources
- U.S. allies caution Trump on Syria strategy