Dearborn, Oct 25 (AP/UNB) — Ford Motor Co.'s net profit fell 37 percent in the third quarter as sales slowed in the U.S. and China.
But the company still made $991 million from July through September, or 25 cents per share. Revenue was up 3 percent to $37.67 billion.
Chief Financial Officer Bob Shanks reaffirmed the company's full-year guidance of making an adjusted $1.30 to $1.50 per share, and he said tariffs cost the company about $1 billion.
Of the $1 billion, $600 million was due to commodity cost increases due largely to U.S. tariffs on imported steel and aluminum. Another $200 million came from retaliatory tariffs imposed by China on U.S. vehicles, with the balance from the cost of canceling plans to build a small vehicle in China, the Focus Active, that was to be exported to the U.S.
Excluding one-time items, Ford says it made 29 cents per share, beating Wall Street expectations. Analysts polled by FactSet predicted 28 cents per share. Revenue also beat estimates, and Ford's shares rose 5 percent in after-hours trading to $8.59.
Ford also said it would not reach a previously announced goal of an 8 percent pretax profit margin by 2020 due to higher costs and deterioration of its European and China businesses.
Investors have been calling on Ford to detail $11 billion worth of cuts that were promised as the company tries to right-size itself to better compete globally. Ford says some employees will lose their jobs, largely white-collar workers.
Shanks and CEO Jim Hackett said they won't release further details until later. Under questioning from analysts, Shanks said the restructuring will take place gradually, mainly during the next five years.
At times there will be big moves, he said. "I know it's frustrating, but I hope that helps investors understand," he said. "We'll share everything we can with you when things are announced."
North America remained Ford's big profit center, where it made $2 billion before taxes, an increase of about $100 million. Shanks said that was due to selling more higher-profit SUVs and trucks and fewer low-margin cars as the market continued to shift away from sedans. So far this year, Ford's U.S. sales are down 2.4 percent.
Shanks said previous restructuring efforts improved North American performance by several hundred million dollars, but he wouldn't be more specific.
Ford lost $152 million pretax in South America, $245 million in Europe and $208 million in its Asia Pacific region including China. It also lost $196 million on autonomous vehicles and mobility services, but made $47 million in the Middle East and Africa and $678 million from its credit arm.
Analysts have complained that Ford hasn't given many details of the restructuring plan, and its stock price has fallen because of that. Its shares have lost about one-third of their value this year.
Ford has released some details. On Wednesday, it announced changes in Asian operations by making its China business a stand-alone unit and recruiting the head of local automaker Chery Automobile to be its new China CEO.
For months, dealers have been complaining about an aging vehicle lineup, with some vehicles essentially staying the same since the 2011 model year.
But at a meeting with U.S. dealers on Oct. 17 in Las Vegas, company executives showed off new models.
Included were the Ranger small pickup, which Ford started to produce this week, as well as new versions of the Escape small SUV and Explorer large SUV that will reach showrooms next year. Also coming in 2019 is a new Mustang GT500, as well as the Super Duty version of the F-Series pickup, and a new Transit van.
In an interview Wednesday, North America President Kumar Galhotra conceded that Ford had let its products get too old, but pledged not to let it happen again.
"Right now our product portfolio isn't as fresh as it should be, but by 2020 it's going to be the freshest in the industry," Galhotra said.
Ford announced previously that it would get out of the declining market for sedans in the U.S. to focus on SUVs, many with hybrid or electric drive systems. The iconic Mustang sports car eventually will be Ford's only U.S. car.
Morgan Stanley analyst Adam Jonas last week downgraded Ford shares from buy to hold and cut his one-year stock price target from $14 to $10.
Jonas wrote in a note to investors that the restructuring plan, while significant, "lacks visibility." He's concerned that "the capital markets do not have confidence in Ford to take decisive action fast enough."
Ford's earnings came the same day as Tesla Inc. delivered on CEO Elon Musk's promise to make money in the third quarter. The electric car and solar panel company earned $311.5 million, swinging from a loss of $619 million a year ago.
San Francisco, Oct 25 (AP/UNB) — Federal officials said Wednesday that Chevron Corp. has agreed to pay a nearly $3 million fine and spend $160 million on environmental improvements and upgrading oil refineries to resolve allegations the company violated pollution laws.
The U.S. Department of Justice said the agreement ends investigations in four states where Chevron's refineries caught fire or released harmful chemicals. The settlement calls for it to spend $10 million on environmental projects in those four states: California, Mississippi, Utah and Hawaii.
The San Ramon, California-based company agreed to spend $150 million upgrading refineries throughout the country.
DOJ said the $2.95 million fine will resolve several regulatory investigations, including the 2013 explosion and fire in Pascagoula, Mississippi, that killed a Chevron worker and a 2012 fire at its Richmond, California, facility that prompted 14,000 residents to be evacuated.
"As part of this settlement, Chevron U.S.A. Inc. has agreed to significant investments at its refineries to enhance the safety and reliability of operations," company spokesman Braden Reddall said. "We believe these measures build on existing efforts to enhance safe practices at Chevron refineries."
Chevron in 2013 paid $2 million in fines and restitution and pleaded no contest to six charges related to the Richmond fire, which sent thousands of residents to hospitals, many complaining of respiratory problems. Chevron entered the plea to charges filed by the California Attorney General's Office and the Contra Costa District Attorney's Office, including failing to correct deficiencies in equipment and failing to require the use of certain equipment to protect employees from potential harm.
It also agreed to spend $20 million on improving the Richmond facility to settle claims made by California regulators.
Dhaka, Oct 24 (UNB)- NOVOAIR, a leading private airline of the country has increased its flights on four routes aiming to meet increasing passengers’ demand.
From October 28, one more flight will operate to Kolkata, Cox’s Bazar and Sylhet routes on daily, said a press release.
NOVOAIR will also operate daily flight to Barishal from the same day.
Currently, NOVOAIR has been operating daily one flight to Kolkata, four to Cox’s Bazar, one to Sylhet and four flights in a week to Barishal.
Apart from that, NOVOAIR also operates daily flights from Dhaka to Chattogram, Saidpur, Jashore and Rajshahi routes.
One way starting fare to Chattogram is BDT 2,500, while to Cox's Bazar BDT 3,900, Jashore BDT 2,700, Saidpur BDT 2,700, Sylhet BDT 2,700, Rajshahi BDT 2,700, Barishal BDT 2,700 and Kolkata return fare starts from BDT 9,999 (including all taxes) only.
Besides, NOVOAIR also has attractive holiday packages for Kolkata and Cox's Bazar.
Dhaka, Oct 24 (UNB)- The country’s electronics giant ‘Walton’ has brought around 100 models of various sorts of home appliances for the imminent winter season.
The newly released home appliances are- room heater, water heater or geyser, washing machine, electric kettle, electric lunch box, oven, induction cooker, rice cooker, vacuum flask, cloth dryer, hair dryer, coffee maker, iron etc.
Uday Hakim, deputy executive director of Walton Group, said “Sales of winter home appliances during the last winter was quite satisfactory. Some uniqueness like reasonable rates, world-class quality, swift after sales service and wide ranges of models of Walton home appliances are gaining huge popularity.”
Md Mashroor Hasan, head of sales of Walton Home appliances, said that they have targeted of meeting large portion of the local demands of home appliances in the upcoming winter.
Considering the overall preparation, he hoped that they would achieve the sales target, set by the company for the upcoming winter season.
Prices of Walton microwave oven are Tk 9,000 to Tk 16,500. Customer can buy various models of washing machine of Walton brand between Tk 10,000 and Tk 45,000. Walton is selling wide models of rice cookers between Tk 1,480 and Tk 7,500.
Dhaka, Oct 24 (UNB)-A seminar of investor protection in capital market has been held in a hotel of Chattogram recently for celebrating World Investor Week, 2018.
Arranged the seminar by Chittagong Stock Exchange (CSE) in a hotel of the port city, Professor Dr. Md. Salim Uddin, Chairman, Bangladesh House Building Finance Corporation presented a paper titled 'Investor Protection in the Capital Market of Bangladesh’.
Dr Salim, FCA, FCMA, Chairman, Executive Committee of Islami Bank Bangladesh Limited, said that, investors are the pillar of the financial and securities market and they determine the level of activity in the market. They also put the money in funds, stocks, etc to help grow the market and thus, the economy.
It is thus very important to protect the interests of the investors, he said.
Investment security and greater inflow of capital into the national economy is largely dependent on the efficiency of corporate regulation for protecting investor and the quality of the institutional environment, said Dr Salim.
More than 200 participants attended the seminar.