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Ford cuts 2017 profit forecast for credit arm

Published 11/17/2016, 10:41 AM
© Reuters. A Ford logo is seen on a wall of the Oakville Assembly Plant as workers with UNIFOR attended a ratification vote nearby
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(Reuters) - Ford Motor Co (N:F) on Thursday lowered the 2017 pretax profit forecast for its financial services arm by $300 million to about $1.5 billion, due to lower auction values for used vehicles.

Ford affirmed that it expects full company pretax profit in 2017 to be down from 2016, and sees its core business to improve in 2018. In September, Ford lowered its forecast for pretax profit this year by $600 million to $10.2 billion.

The company expects Ford Credit to record a pretax profit of about $1.5 billion in 2017, down about $300 million from its prior estimate.

Ford expects its core automotive business to improve in 2017 and 2018.

Ford shares fell 1.1 percent to $11.86 in early trading.

© Reuters. A Ford logo is seen on a wall of the Oakville Assembly Plant as workers with UNIFOR attended a ratification vote nearby

(This story corrects in first paragraph to clarify that lower profit due to lower auction values of its products, not risk factors)

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