Ford is cutting another 1,700 salaried positions and reducing its full-year profit outlook for the second time in two months, the Associated Press (AP) reported.

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According to AP, Ford said it now expects to earn $US1 to $1.25 per share, 25 cents lower than its previous forecast issued in April, when the company lowered its original guidance of $1.75 to $1.95 per share.


The company reportedly said that the profit outlook for its North American operations has weakened over the last two months, and added that “continued supplier-related challenges” also will affect results.


Ford also said it was taking new steps to reduce costs related to salaried employees this year, the Associated Press added. The company will cut salaried positions at its North American operations by 5%, or about 1,700, and reduce the use of agency and purchased services by 10% – the new cuts come on top of 1,000 salaried job cuts also announced in April.


AP noted that Ford did raise its second-quarter earnings guidance before special items to a range of 30 cents to 35 cents a share, up from previous estimates of break-even to a loss of 15 cents a share.

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Analysts reportedly appear to have viewed Ford’s earlier full-year forecast for earnings of $1.25 to $1.50 per share as too optimistic, based on the average estimate of $1.16 per share carried in a survey by Thomson Financial – the average estimate for the second-quarter is 13 cents a share.


“Although we have increased our earnings guidance for the second quarter, challenges continue to mount, especially in our North America automotive operations,” Chief Financial Officer Don Leclair said in a statement cited by the Associated Press.


AP noted that Ford also will eliminate bonuses this year for salaried management employees, and suspend the matching company portion in its 401(k) plans for salaried employees from July 1.