Ford Q3 Earnings: $827 Million Lost on Argo AI Shutdown

Detroit — ford motor companyon Wednesday posted a third-quarter loss of $827 million. Shut down Argo AIa self-driving car development company in which automakers had invested heavily.

CEO Jim Farley said the company now believes mass deployment of fully self-driving cars is “a long way off,” while CFO John Lawler said it could be “more than five years away.” added that there is

Ford’s adjusted earnings before interest and taxes declined 40% from the prior year period to $1.8 billion. That’s just over the $1.4 billion to he $1.7 billion range. schedule for last month With the warning that inflation has greatly increased the costs of suppliers.

The automaker’s adjusted profit margin nearly halved to 4.6% and revenue rose 10% to $39.4 billion.

Lawler told journalists that Ford’s third-quarter results “could have been better,” but that the automaker is encouraged by operating cash flow of $3.8 billion. He now expects full-year adjusted earnings to be about $11.5 billion, which is the lower end of his $12.5 billion guidance from his previously provided $11.5 billion.

Lawler said this is partly due to the fact that many of Ford’s non-semiconductor suppliers are unable to start production as quickly as they would like due to labor shortages or other factors.

Ford made $1.3 billion in North America and posted a 5% EBIT margin. This is down from this time a year ago due to rising costs and lack of available parts. Ford said he had 40,000 vehicles partially built and awaiting parts as of the end of September, but hopes to have them all processed by the end of the year.

Ford earned $256 million in Europe, $147 million in South America and $104 million in its International Markets group in the quarter. The automaker lost his $154 million in China.

Ford said its third-quarter results were ruined by Argo AI’s failure to attract new investors. As Argo scales back, Ford now plans to stop spending on Level 4 advanced driver assistance systems and focus on lower-level advanced systems that can be deployed faster.

https://ift.tt/GDuxBta Ford Q3 Earnings: $827 Million Lost on Argo AI Shutdown

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