Ford 2Q Earnings Fall 48 Percent On Production, China Woes
DETROIT (AP) – Dinged by slumping China sales and a fire at a U.S. parts factory that cut production of lucrative pickup trucks, Ford Motor Co.’s second-quarter net profit fell 48 percent from a year ago.
The company says it made $1.1 billion from April through June, or 27 cents per share, falling short of Wall Street expectations. Analysts polled by FactSet expected adjusted earnings of 31 cents per share.
Ford’s performance slumped largely because the fire knocked out production of highly profitable F-Series pickup trucks for a little over a week in May. Ford said at the time it had enough inventory so that sales wouldn’t take a big hit. China sales slumped due to aging products, and the company’s joint venture there was about break-even.
Toy Maker Mattel to Cut More Than 2,200 Jobs
NEW YORK (AP) – Mattel, hurt by the closing of Toys R Us stores, said Wednesday that it will cut more than 2,200 jobs as the maker of Barbie dolls and Hot Wheels cars seeks to save money.
Like other toy companies, Mattel has lost sales as Toys R Us faltered. The toy retailer filed for bankruptcy protection last year, announced it was liquidating its business in March and then closed all its stores last month.
Mattel rival Hasbro, however, reported better-than-expected second-quarter financial results earlier this week, a sign that the maker of Monopoly and Play-Doh is rebounding from the demise of Toys R Us.
A Mattel spokesman said the job cuts will affect mainly its office workers worldwide and are part of the company’s efforts to slash at least $650 million in costs. Mattel, which is based in El Segundo, California, has about 28,000 employees.