Ford Profit Falls Short on Quality Problems, Warranty Costs.

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

Ford Motor Co. reported second-quarter profit that fell short of expectations due to quality problems with new vehicles, resulting in increased warranty costs. The company's adjusted earnings per share were 47 cents, lower than the average estimate of 67 cents. Ford's revenue for the quarter increased by 6.2% to $47.8 billion. The Chief Financial Officer acknowledged the need to improve quality and reduce costs, but expressed confidence in the company's direction. Ford has been grappling with persistent quality issues, which have led to higher warranty costs and put the company at a disadvantage compared to its competitors. The CEO has emphasized the importance of addressing these problems and implementing new processes to prevent recalls and lower warranty costs in the future. Ford reaffirmed its earnings outlook for the year, but lowered guidance for its gas-powered vehicles and hybrids due to the quality issues. In contrast, General Motors increased its profit guidance for the year. Ford's stock fell by as much as 13% in after-hours trading following the announcement of the results. [Extracted from the article]

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