DETROIT – Ford engine The company was at the low end of its previously announced 2024 profit guidance as it slightly beat Wall Street’s expectations for the third quarter.

The Detroit automaker said Monday that it now expects adjusted earnings before interest and taxes (EBIT) of about $10 billion. Previously it was assumed that it would be between 10 and 12 billion US dollars. The company maintained its guidance for adjusted free cash flow between $7.5 billion and $8.5 billion.

Heading into Monday’s results, several Wall Street analysts were concerned that Ford would lower its forecast due to slowing demand, rising vehicle inventories and concerns about Ford’s ability to meet its announced $2 billion in cost cuts this year year would have to be reduced.

“Our focus remains on cost and quality, which are slowing our progress and represent tremendous growth potential,” John Lawler, Ford CFO and vice chairman, said during a media briefing on Monday.

Lawler said Ford reached its $2 billion mark in materials price and manufacturing costs, but higher inflation and warranty costs have offset those improvements.

This is how the com worksPall conducted in the third quarter, compared to LSEG’s average estimates:

• Earnings per share: 49 cents adjusted versus 47 cents expected
• Automobile sales: $43.07 billion versus expected $41.88 billion

Shares of the automaker fell more than 4% in after-hours trading after closing at $11.37 on Monday, up 2.7%.

The automaker was under pressure after a disappointing second quarter in which unexpected warranty costs caused the company to miss Wall Street’s earnings expectations.

Lawler said the company’s warranty costs were slightly lower than a year ago, after increasing $800 million year-over-year in the second quarter. He declined to disclose total costs in the third quarter.

Ford’s third-quarter results were led by its “Pro” commercial vehicle and fleet business, as well as its traditional division, known as “Ford Blue.” Blue reported adjusted profit of $1.63 billion, while Pro earned $1.81 billion.

The Model e electric division posted losses of $1.22 billion in the third quarter, lower than a year earlier, largely due to lower volumes.

Ford’s third-quarter net income was $896 million, or 22 cents per share. Adjusted EBIT increased about 16% year-over-year to $2.55 billion. Ford’s third quarter of 2023 included automotive sales of $41.18 billion, net income of $1.17 billion, or 30 cents per share, and adjusted earnings before interest and taxes of $2.2 billion, or 39 cents per share.

Ford’s total revenue, including its financial business, rose about 5% year-over-year to $46.2 billion in the third quarter.

This is breaking news. Please check back for updates.