Ford Motor Co.’s strong second-quarter earnings have been overshadowed by news that the automaker is recalling 870,000 F-150 pick-up trucks in the U.S.
During its Q2 earnings release, Ford announced that it is recalling 870,701 trucks made between 2021 and 2023 due to the risk of an unexpected activation of the electric parking brake.
The Detroit automaker also pushed back the timing of its electric vehicle (EV) rollout, saying it now expects to be building EVs at a rate of 600,000 per year sometime in 2024, a delay from earlier estimates that it would reach that target by the end of this year.
News of the recall and delayed EV rollout have led Ford’s stock to fall about 2% in premarket trading despite the company reporting a Q2 earnings beat.
Ford announced earnings per share (EPS) of $0.72 U.S. compared to $0.55 U.S. that was expected on Wall Street, according to Refinitiv Data.
Revenue in the April through June period amounted to $42.43 billion U.S. versus $40.38 billion U.S. that was expected among analysts.
Ford also increased its full-year earnings forecast to a range of between $11 billion U.S. and $12 billion U.S., up from a previous forecast of $9 billion U.S. to $11 billion U.S.
The company also lifted its expected free cash flow to a range of $6.5 billion U.S. to $7 billion U.S. from prior guidance of $6 billion U.S.
Ford’s traditional business operations, known as Ford Blue, earned $2.31 billion U.S. during Q2, while its Ford Pro commercial business earned $2.39 billion U.S.
The company’s “Model e” electric vehicle unit lost $1.08 billion U.S. in Q2. Ford said it expects to lose $4.5 billion U.S. on electric vehicles this year.
Ford’s stock has declined 2% over the last 12 months to trade at $13.73 U.S. a share.
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