Ford Motor Company reported a two-fold drop in net income amid costs of global business restructuring and falling sales.
“Our global restructuring is a conscious choice to transform our organization to become the most trusted company in the world and a clear leader in an era of rapid change,” said Jim Hackett, President and CEO of Ford.
“We are laying the foundation for continuous improvement in customer service and future growth in free cash flow and profitability,” said Tim Stone, Chief Financial Officer, Ford.
The payment for the changes was the drop in net profit in the third quarter from $ 991 to $ 425 million, in the nine months from the beginning of 2019 - from 3.8 to 1.7 billion. Both figures compared to the same period last year.
Ford Motor's quarterly revenue fell 2% to $ 37 billion, which is nevertheless slightly higher than analysts predicted. Ford's sales fell the most in the Chinese market - by 27% and in South America - by 19%.
At the same time, the company noted signs of improvement in its Chinese business. The company has begun rolling out new country-specific products while reducing costs and strengthening its dealer network and sales opportunities.
Ford Motor has revised its 2019 operating profit forecasts to be in the $ 6.5-7 billion range, up from the $ 7-7.5 billion range reported a quarter earlier.
After the publication of the financial statements, the company's shares fell in price by 3%.
