• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there

Ford Lowers 2016 Pre-Tax Profit Forecast on Expanded Recall

By
Reuters
Reuters
Down Arrow Button Icon
By
Reuters
Reuters
Down Arrow Button Icon
September 8, 2016, 3:30 PM ET
General Views Ahead Of Domestic Vehicle Sales Figures
A line of Ford Focus vehicles sit on display at the Uftring Automall in East Peoria, Illinois, U.S., on Friday, Jan. 27, 2012. Cars and light trucks sold at an average 13.4 million seasonally adjusted annualized rate in the final three months of 2011, the best since April-June 2008, figures from researcher Autodata Corp. show. Photographer: Daniel Acker/Bloomberg via Getty ImagesPhotograph by Bloomberg via Getty Images

Ford Motor Co. lowered its 2016 adjusted pre-tax profit forecast to $10.2 billion from the at least $10.8 billion it forecast in July because of a $640 million charge for an expanded vehicle recall, the company said on Thursday.

The recall is for side-door latches that may come unhinged while vehicles are in motion. It was expanded on Thursday by 1.5 million vehicles to 2.4 million vehicles.

“With this expanded (recall), we now expect our 2016 total company adjusted pre-tax profit to be about $10.2 billion. We continue to expect our total company adjusted pre-tax profit in the third quarter of 2016 to be about 10 percent of our full-year 2016 results,” Ford said in a filing with the U.S. Securities and Exchange Commission.

That would suggest a third-quarter adjusted pre-tax profit of about $1 billion, down about 60 percent from $2.7 billion a year earlier. Last year, Ford set a company record for any third quarter’s adjusted pre-tax profit.

Ford (F) said in July that the second half of 2016 will not be as profitable as the first half of this year, when it recorded $6.8 billion of adjusted pre-tax profit. That is partly because of beneficial factors that will not reoccur in the second part of the year and the expense of the rollout of Ford’s highly profitable Super Duty large pickup trucks.

Ford shares on Thursday morning were down nearly 0.5 percent at $12.64 in New York trading.

When it issued second-quarter financial results in late July, Ford said its 2016 adjusted pre-tax profit would be equal to or greater than last year’s $10.8 billion.

Ford said the new expense will show in its third-quarter results and primarily in North America, its most profitable region which has been driving record company profits recently.

The company has recalled nearly 4 million vehicles for door latch issues in six separate recalls since 2014.

Ford said the latest expansion was at the request of the U.S. National Highway Traffic Safety Administration after the automaker in August issued a regional recall covering 830,000 vehicles.

The recall includes the 2013-15 Ford C-MAX and Ford Escape, 2012-15 Ford Focus, 2015 Ford Mustang and Lincoln MKC and 2014-16 Ford Transit Connect.

About the Author
By Reuters
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Kevin O'Leary wears a silver and black suit with a chain of basketball cards around his neck.
AIData centers
From the Trump administration to Kevin O’Leary, there’s a new narrative that China is to blame for plummeting data center popularity
By Sasha RogelbergJune 10, 2026
1 hour ago
Health care’s AI dividend is real. The fight now is over who reaps the gains
NewslettersCEO Daily
Health care’s AI dividend is real. The fight now is over who reaps the gains
By Diane BradyJune 10, 2026
1 hour ago
JB Straubel, co-founder of Tesla and founder and CEO of Redwood Materials, speaking at Fortune Brainstorm Tech 2026 in Aspen, Colorado. (Photo: Michael Faas/Fortune)
NewslettersFortune Tech
Why China is outpacing the U.S. power grid
By Andrew NuscaJune 10, 2026
2 hours ago
Saudi economy redraws ambitions—‘going local’ is the new buzz phrase 
Middle EastSaudi Arabia
Saudi economy redraws ambitions—‘going local’ is the new buzz phrase 
By Melissa HancockJune 10, 2026
2 hours ago
America’s emergency oil reserve is about to hit its lowest level since Reagan was in office
EnergyIran
America’s emergency oil reserve is about to hit its lowest level since Reagan was in office
By Jordan BlumJune 10, 2026
3 hours ago
Mortgage rates today, June 10, 2026
Personal Financemortgages
Mortgage rates today, June 10, 2026
By Glen Luke FlanaganJune 10, 2026
3 hours ago

Most Popular

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
1 day ago
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
Economy
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
By Nick LichtenbergJune 9, 2026
17 hours ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
2 days ago
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
Environment
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
By Sasha RogelbergJune 8, 2026
2 days ago
Current price of oil as of June 9, 2026
Personal Finance
Current price of oil as of June 9, 2026
By Joseph HostetlerJune 9, 2026
21 hours ago
Current price of oil as of June 8, 2026
Personal Finance
Current price of oil as of June 8, 2026
By Joseph HostetlerJune 8, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.