China, tariffs ding Ford Q3 profits

Toggle sidebar Toggle sidebar
umbrella39

umbrella39

Lifer
Jun 11, 2004
13,819
1,126
126
So much winning I literally can't stand it... Exactly what Michigan doesn't need... another 1 State recession....

Dearborn — Ford Motor Co. profits slid 37 percent in the third quarter due mainly to continuing losses in China and costly steel tariffs, the company said Wednesday, and it will not reach its 2020 pre-tax margin targets. Net income is off 27 percent for the year.

Ford booked net income of $991 million in the third-quarter on $37.6 billion in revenue, up 3 percent for the quarter. But the Dearborn automaker lost $378 million in China alone, Chief Financial Officer Bob Shanks said Wednesday. That's 20 percent less than the company lost there in the second quarter, but enough to ding the increased revenue and profits generated by its North American business.

https://www.detroitnews.com/story/b...4/china-tariffs-ding-ford-profits/1750514002/
 
Commodus

Commodus

Diamond Member
Oct 9, 2004
9,210
6,809
136
Between this and AT&T, it sounds like Trump's economic policies are doing just the opposite of what he intended. Not a surprise, but if this continues, don't be surprised if all those companies who backed Republicans decide to withhold a lot of their contributions for 2020.
 
  • Like
Reactions: DarthKyrie
Homerboy

Homerboy

Lifer
Mar 1, 2000
30,856
4,974
126
G

Genx87

Lifer
Apr 8, 2002
41,095
513
126
This imo are the cracks that will continue through the next 12-18 months and into a recession. We are about due anyways. But this idiot n chief is speeding it along and will make it harder to recover imo.
 
UglyCasanova

UglyCasanova

Lifer
Mar 25, 2001
19,275
1,361
126
I disagree with tariffs and the trade war was a bad idea. I get it about state sponsored corporate espionage though and China has done some shitty practices and if this helps then good. If it’s just meant to buy votes from steel workers which I believe it is screw it.
 
F

fskimospy

Elite Member
Mar 10, 2006
84,055
48,050
136
UglyCasanova said:
I disagree with tariffs and the trade war was a bad idea. I get it about state sponsored corporate espionage though and China has done some shitty practices and if this helps then good. If it’s just meant to buy votes from steel workers which I believe it is screw it.
Click to expand...

Sure, most competent people simultaneously dislike some of China's trade practices and acknowledge that this was about the dumbest way possible to go about changing them.

I mean the president found his trade adviser by having his son-in-law search on Amazon. We are not exactly talking about smart people here.
 
1prophet

1prophet

Diamond Member
Aug 17, 2005
5,313
534
126
Ironic seeing the living wage, environmentally conscience, union supporting, human rights champion liberal Democrats complaining about tariffs to China, proving once again the profit only matters corporate stooges they have become when they abandoned the middle class and living wages.

But it's all OK because Trump, and there are more important issues like the sex on birth certificates and bathroom policies to address.

https://www.nytimes.com/2017/06/21/business/ford-china-export-focus-mexico.html
"But China is angling for a big share of the future. Beijing has put very heavy pressure on Western automakers to transfer their latest, most cutting-edge technology to China as a condition of doing business. Many companies, including Volkswagen, General Motors and Ford, have plans to shift more research and development to China, particularly around electric cars.

China has an increasingly global auto presence. General Motors began exporting the Buick Envision compact sport utility vehicle to the United States last year, although the Envision is a much lower-volume model than the Focus. Volvo, which is owned by a Chinese company, started exporting S60 sedans from China to the United States in 2015, while Cadillac this spring started shipping its Shanghai-made CT6 Plug-in hybrid to the United States.

Ford’s decision will significantly ramp up the country’s car exports. The Focus would more than triple China’s exports of fully built cars to the United States."

Auto parts are also much cheaper in China than in the United States, because labor tends to be a larger share of the cost than final assembly. The global auto parts industry has shifted much of its production to China, partly because of low costs and partly because China’s steep tariffs make it impossible for multinational manufacturers to compete in the Chinese market unless they produce in China.

Effort to Form Union in China Meets Ferocious Repression
http://www.labornotes.org/2018/09/effort-form-union-china-meets-ferocious-repression
A group of workers in China’s manufacturing hub of Shenzhen tried something very rare this summer—they attempted to follow the legal process to set up a union.

University students lent tremendous support. But their employer and the Chinese government cracked down on both the workers and the students with firings, detention, surveillance, and the threat of jail sentences.
Click to expand...


They [capitalists] will furnish credits which will serve us for the support of the Communist Party in their countries and, by supplying us materials and technical equipment which we lack, will restore our military industry necessary for our future attacks against our suppliers. To put it in other words, they will work on the preparation of their own suicide.

Vladimir Lenin

images














 
JSt0rm

JSt0rm

Lifer
Sep 5, 2000
27,399
3,947
126
nobody knew the economy was so hard.


I have like 3 years of living in cash right now. lol. This retard has me freaked out.
 
umbrella39

umbrella39

Lifer
Jun 11, 2004
13,819
1,126
126
Odd news or maybe not depending on your take:

https://www.freep.com/story/money/cars/2018/10/25/ford-stock-increase/1764255002/

Ford stock sees biggest increase since 2011 after earnings report

Ford Motor Co. saw its stock price jump 9.9 percent Thursday, the day after issuing its third-quarter earnings report.

"I'm puzzled over why Ford stock is taking its biggest jump in years," said John McElroy, a respected industry observer and host of Autoline.tv. "I'm guessing what the analysts like are Ford's margins in North America. This shows its strategy of exiting passenger cars sure looks like a smart one."

Early in the day, the stock saw the biggest single-day percentage gain since August 2011, according to Marketwatch. The per-share price was listed at $8.99 at 4:07 p.m. EDT.

The one-day gain hardly erases years of suffering for the stock. It has spent much of the last two weeks at a nine-year low, dipping as low as $8.19, under the $8.89 closing on Sept. 1, 2009.
 
You must log in or register to reply here.

TRENDING THREADS

COMPANY
RESOURCES
FOLLOW
Top Bottom