Ford Motor Co.'s third-quarter net income tumbled nearly 60% as the company booked $1.5 billion in charges mainly for restructuring, and Chinese and U.S. sales fell.
The Dearborn, Michigan, automaker knocked a half-billion dollars off its full-year pretax earnings guidance. Ford now says it will make $6.5 billion to $7 billion, or $1.20 to $1.32 per share.
Ford's net income from July through September was $425 million, or 11 cents per share. Excluding restructuring charges, the company made 34 cents per share. That soundly beat Wall Street estimates that averaged 26 cents per share.
Revenue fell 2% to $36.99 billion, partly because the company bungled the launch of the new Ford Explorer SUV. Sales of the highly profitable Explorer were down 48% for the quarter as quality problems forced the company to hold shipments to dealers.
Ford's revenue also beat Wall Street estimates of $36.87 billion, according to data provider FactSet.
FILE - In this Jan. 9, 2019, file photo Ford Motor Co., Executive Vice President of Product Development, Hau Thai-Tang stands near the redesigned 2020 Ford Explorer during its unveiling in Detroit. Ford Motor Co. reports financial earns on Wednesday, Oct. 23. (AP Photo/Carlos Osorio, File)Included in the restructuring charges was $800 million to reduce the value of assets in India, where the company formed a joint venture with Mahindra, as well as ending its Chariot ride-hailing service.
Chief Financial Officer Tim Stone said Ford is making progress, emphasizing improved free cash flow to $200 million. He said the automaker is rolling out the right portfolio of new products, restructuring to improve productivity, and developing smart autonomous vehicles.
"We think the trajectory is improving across the business," he said.
Ford, which released earnings after the markets closed Wednesday, said higher than expected warranty costs, expected lower sales and income in China and increased discounts in North America caused the company to cut its full-year guidance.