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Ford Profit Drops in Second Quarter, Thanks in Part to the F-150 Parts Supplier Fire

Ford is following in Nissan?s footsteps with a dismal quarter, lowered earnings guidance and all.

In its second quarter, Ford’s earnings dropped roughly 50 percent, in part due to interruptions with F-150 production caused by a well-publicized parts supplier fire and lower than anticipated performance in China and Europe.

As a result, Ford has lowered its 2018’s earnings guidance, with word it will focus on restructuring and diverting funds to more profitable business units.

In comparison, Ford saw a $122 million profit in Europe in Q2 2017 compared to a $73 million loss during the same period this year.

?It?s clear that the redesign is going to be fundamental and it?s going to be deep and it?s going to really address these underperforming parts of the business,? said Bob Shanks, Ford?s CFO, in a conference call.

Lastly, Ford also had a $299 million windfall due to Takata airbag lawsuits settlements with vehicle owners.

NEXT: FORD ISSUES F-150 RECALL ALONG WITH EXPEDITION AND NAVIGATOR

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