Ford reports preliminary 2018 earnings below expectations, outlines lineup redesign

Shares of Ford Motor Co. fell 0.6% in premarket trade Wednesday, after the automaker reported preliminary 2018 earnings that were below expectations, and outlined its plan for a global redesign of its vehicle lineup. The company said 2018 earnings per share was 92 cents, compared with $1.90 a year ago. Excluding non-recurring items, Ford said adjusted 2018 EPS was $1.30, below the FactSet consensus of $1.33. Chief Financial Officer Bob Shanks said the external challenges the company faced included commodity costs, unfavorable currency exchange effects, policy changes, a decline of business in China and higher warranty costs in North America. As part of its plan to redesign its lineup, Ford said it will refresh 75% of its lineup in North America over the next 24 months, including increasing the mix of its SUVs and fortifying its truck franchise. In addition, Ford said it will introduce 10 new Ford and Lincoln products in China this year, and more than 30 products by 2021. "We are bolstering our portfolio to capture a healthy share of higher growth and higher profit segments and partnering where appropriate to improve profitability and returns," said Jim Farley, president of global markets. Ford's stock has gained 0.5% over the past three months through Tuesday, while the S&P 500 has lost 7.1%.

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