Ford Q3 profit falls nearly 60%

Dearborn (US): Ford Motor Co.'s third-quarter net income tumbled nearly 60 per cent as the company booked 1.5 billion in charges mainly for restructuring, and Chinese and U.S. sales fell.

The Dearborn, Michigan, automaker knocked a half-billion dollars off its full-year pretax earnings guidance. Ford now says it will make 6.5 billion to 7 billion, or 1.20 to 1.32 per share.

Ford's net income from July through September was 425 million, or 11 cents per share. Excluding restructuring charges, the company made 34 cents per share. That soundly beat Wall Street estimates that averaged 26 cents per share.

Revenue fell 2% to 36.99 billion, partly because the company bungled the launch of the new Ford Explorer SUV. Sales of the highly profitable Explorer were down 48% for the quarter as quality problems forced the company to hold shipments to dealers. Ford's revenue also beat Wall Street estimates of 36.87 billion, according to data provider FactSet.

Included in the restructuring charges was 800 million to reduce the value of assets in India, where the company formed a joint venture with Mahindra, as well as ending its Chariot ride-hailing service.