Shares of Ford Motor Company (NYSE: F) opened 6% lower on Thursday after the Company reported lackluster second quarter earnings and a disappointing full-year outlook.
The U.S. car-maker said adjusted earnings were USD 0.28 a share, falling short of estimates of USD 0.31. Ford’s automotive business posted better-than-expected revenue for the period, however. Sales came in at USD 35.76, ahead of USD 35.07 anticipated by Wall Street.
By region, the Company delivered total revenue growth in North America and China. North American sales rose 1% while sales in China grew 48% thanks to higher volume of the Company’s luxury car brand Lincoln. Ford’s business in South America, Europe, the Middle East, and the Asia Pacific area each posted revenue declines during the quarter. South America saw the worst sales slump, down 33% partly due to the phase out of Ford’s Fiesta and Focus vehicles.
“Midway through this key year of action, we are pleased with the progress we are making toward creating a more dynamic and profitable business,” said Jim Hackett, Ford President and Chief Executive Officer. “In this time of profound change in our industry, Ford has amazing opportunities to delight customers, innovate and collaborate in new ways, and create value.”
The automaker has announced major plans this year to gain ground in the electric vehicle (EV) market. In January, Ford said it was developing hybrid and electric versions of its best-selling F-150 pickup. More recently, the Company partnered with Volkswagen AG (OTC: VWAPY) to develop electric and autonomous vehicles.
For full-year 2019, Ford said it expects EPS to be between USD 1.20 and USD 1.35. This compares to earnings of USD 1.30 per share a year earlier.
Shares of Ford have gained 30% this year versus industry competitors like Toyota Motor Corp. (NYSE: TM), up 14%, and Nissan Motor Co. (OTC: NSANY), down nearly 13%.