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Ford Motor To Not Reach 8% EBIT Margin Or High Teens ROIC Targets By 2020

Ford Motor Company (F) reaffirmed adjusted EPS guidance for the full-year in the range of $1.30 to $1.50 and positive cash flow that will be lower than 2017. The company noted that as a result of the higher costs and uncertainty impacting the entire sector, coupled with unexpected deterioration in the current year in the Europe and China business, it will not reach previously announced 8 percent EBIT margin or high teens ROIC targets by 2020.

For the third quarter 2018, company revenue was up 3 percent year over year to $37.6 billion, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China. Company adjusted EBIT was $1.7 billion, down $0.6 billion from a year ago. Adjusted earnings per share was $0.29 compared to $0.44, previous year.

In North America, the company delivered an 8.8 percent EBIT margin, supported by more than $1 billion of improved mix, due to the continued shift towards utilities and trucks, as well as high-end trim models.

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