PVTL Pivotal Software Inc

By Mike Colias 

Ford Motor Co. posted flat second-quarter operating income and stood by a forecast for improved profitability this year, as it begins to reverse steep losses overseas.

Ford on Wednesday reported $1.7 billion in operating profit for the April-to-June period, helped by strong sales and pricing on pickup trucks and sport-utility vehicles in its home U.S. market. The company also sharply cut losses in China and swung to a small profit in Europe.

Ford's earnings per share, adjusted for one-time items, was 28 cents, lower than the 31-cent average forecast from Wall Street analysts. That result included a 4-cent drag from a loss in value on Ford's investment in a software company, Pivotal Software.

Ford said it expects operating income this year to be between $7 billion and $7.5 billion, up from $7 billion last year. Ford previously said it expected an improvement, but hadn't pegged a range. It said earnings per share would be $1.20 to $1.35, vs. $1.30 last year. Net income sank to $148 million, from $1.1 billion a year earlier. The drop is largely explained by more than $1 billion in charges stemming from plant closures and layoffs in Europe and South America, where Ford recently undertook major restructurings.

Second-quarter revenue was flat at $38.9 billion. After a rough two-year stretch, Ford has shown some signs of early progress on Chief Executive Jim Hackett's turnaround strategy. The company said operating income from its automotive business has grown for two straight quarters, the first time that has happened in more than three years.

Ford is adding more trucks and sport-utility vehicles to its lineup while trimming smaller, less-profitable car lines in the U.S. and other markets. It also is shrinking its presence in Europe and South America to focus on higher-margin categories, like commercial vans and pickup trucks.

(More to Come)

Write to Mike Colias at Mike.Colias@wsj.com

(END) Dow Jones Newswires

July 24, 2019 16:35 ET (20:35 GMT)

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