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New York Post
Ford stock plunges nearly 20% in worst day since 2008, following profit miss
By Taylor Herzlich,
7 hours ago
Ford plunged nearly 20% on Thursday after the company missed Wall Street’s profit estimates — leading to the worst single-day stock decline for the automotive giant in nearly two decades.
The Detroit-based car manufactured revealed late Wednesday a second-quarter operating profit of $2.8 billion, down 26% from $3.8 billion in the second quarter of 2023, as it struggles with quality-related costs and stiff competition in its EV business.
Operating profit fell far below analysts’ expectations of $3.7 billion, according to FactSet.
Ford shares plunged after the automaker revealed disappointing second-quarter operating profit. AP
The stock fell 18.4%, to $11.16, its worst day since 2008.
Ford’s results have been hit hard by high warranty costs, which were up $800 million since the first quarter, putting the expense at around $2 billion, or 4% of sales.
The company’s EV business lost $1.1 billion — less than it lost the previous quarter and less than the traditional business.
Ford’s commercial business earned $2.6 billion, less than the $3 billion it reported in the first quarter.
“This is a very tough industry, a very tough period and everybody has to fight for performance,” Stellantis CEO Carlos Tavares said. “We will have to work hard to deliver that performance.”
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