Ford Motor Company shares slipped seven percent by midday Wednesday after executives cautioned that profits are expected to come in lower in 2018, the Detroit Free Press reports. That’s despite a series of announcements made by Ford at the 2018 Consumer Electronics Show and North American International Auto Show relating to new products like the updated Ford Edge and brand-new Ranger, new investments in electrification, and new initiatives on the “Smart Mobility” front.
Ford Chief Financial Officer Bob Shanks specifically cited the higher costs of steel, aluminum, and other metals – along with fluctuating currency rates in certain global markets – as driving forces behind the anticipated decline in profits. Meanwhile, Ford says it’s working to reduce operating costs by cutting down on manufacturing complexity, marketing, and engineering costs. CEO Jim Hackett outlined some details of the automaker’s “fitness push” at his first strategic update session last October.
“We are exploring every option you can imagine,” Ford President of Global Markets Jim Farley says.