Ford Profit Falls Short on Quality Woes, Rising Warranty Costs.

FORD Motor Co.; WALL Street (New York, N.Y.); INVESTORS; COST; INFRASTRUCTURE (Economics); CHIEF financial officers; WARRANTY

Ford Motor Co. reported lower-than-expected second-quarter profit due to quality issues with new vehicles, resulting in increased warranty costs. The company's adjusted earnings per share were 47 cents, missing the average analyst estimate of 67 cents. Ford's revenue for the quarter increased by 6.2% to $47.8 billion. The automaker acknowledged the need to improve quality and reduce costs, but expressed confidence in its direction. Ford reiterated its earnings outlook for the year, but lowered guidance for its gas-powered vehicles and hybrids unit due to the quality problems. The company has been focusing on producing traditional internal-combustion engine models, including a redesigned version of its F-150 pickup truck, as demand for electric vehicles has been lower. Ford's CEO has stated that the company's EV unit is a significant financial burden. Following the announcement, Ford's shares fell by as much as 11% in extended trading. Despite this, the stock had seen an 18% increase since mid-June. [Extracted from the article]

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