Ford’s new-model spending dents bottom line |
| MarketWatch - Jul 26, 2011 |
Ford Motor Co. said its second-quarter net income slipped more than 7% as the auto maker increased spending on new-model development and paid higher prices for commodities such as steel and plastics.
Net income totaled $2.40 billion, or 59 cents per share, compared with 61 cents a share a year-earlier. Excluding some items, the company said Tuesday it generated 65 cents per share, exceeding analyst expectations of 60 cents a share according to a consensus of analysts surveyed by FactSet Research. Revenue jumped 13% to $35.5 billion.
Ford /quotes/zigman/264304/quotes/nls/f F -1.37% is wrestling with the need to spend money to improve its vehicles while keeping the rising prices of commodities, such as steel, copper and plastics, in check. The auto maker is updating models such as the Fusion sedan while investing more money in research and development for its Lincoln brand.
The auto maker reported a decline in operating profit in every region except North America, which increased $10 million to $1.9 billion amid higher sales prices for its new cars and trucks.
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- Posted: 2011-07-26 11:57:42
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