Ford Cuts 2024 Earnings Guidance Due to Warranty Costs and Slow Pace of Cost Cutting

DETROIT (AP) — Stubbornly high warranty expenses and lagging cost-cutting efforts are holding back Ford Motor Co.’s profits this year, causing the company to lower its full-year earnings guidance. That pushed the company’s stock price down 6% in trading after Monday’s closing bell. The automaker reported third-quarter earnings after the markets closed and said its net profit tumbled nearly 26% as it took $1 billion in accounting charges to write down assets for a canceled three-row electric SUV. Ford said it made $892 million from July through September, compared with $1.2 billion a year earlier. But excluding the one-time items, the company made an adjusted pretax profit of $2.6 billion, or 49 cents per share, beating analysts’ estimates.

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