Page 24 - ARUBA TODAY

Wednesday 21 June 2017 BUSINESS
A24

Ford to move Focus production to China, sees no US job loss

By DEE-ANN DURBIN Spicer said the president
AP Auto Writer wants to lower business tax-
DETROIT (AP) — Ford Mo- es and reform the tax code
tor Co. will export vehicles so businesses will want to
from China to the U.S. for “come back to the United
the first time starting in States, grow in the United
2019. States, manufacture more
Ford said Tuesday it plans in the United States.”
to move production of its Hinrichs said Ford’s re-
Ford Focus small car from search shows that cus-
the U.S. to China, where it tomers — who are used to
already makes the Focus phones and other gadgets
for Chinese buyers. Ford from China — care more
will continue to make the about product quality than
Focus in Europe, and will where their vehicles are
also export some variants made.
of the Focus from Europe Plans for production of the
to the U.S. 2019 Focus — which will be
Sales of small cars have larger and have some sig-
dropped sharply in the nificant updates — have
U.S. and companies are bounced around over the
seeking to cut costs mak- Ford vehicles sit on the lot at a car dealership, in Brandon, Fla. Ford Motor Co. will export vehicles last few months as Ford
ing them. Ford’s president from China to the U.S. for the first time starting in 2019, announced Tuesday, June 20, 2017. Ford tries to squeeze some prof-
of global operations Joe will move production of its Ford Focus small car from the U.S. to China, where it already makes the its from the ailing small car
Hinrichs said the move to Focus for Chinese buyers. (AP Photo/Chris O’Meara) segment. U.S. Focus sales
China will save the com- were down 20 percent
pany $1 billion, including move won’t cost U.S. jobs. in its Kentucky Truck Plant in ment will secure 1,000 jobs through May, hurt by low
$500 million for canceling The suburban Detroit plant Louisville to make the new, at the Kentucky plant. gas prices and consumer
plans to build the Focus in that currently makes the aluminum-sided Ford Expe- But the White House re- preference for SUVs.
Mexico. Focus will be converted dition and Lincoln Naviga- sponse was muted. Asked In January, the company
Wary of the response from late next year to produce tor SUVs. Those vehicles will Tuesday whether Trump announced it would can-
President Donald Trump, the Ford Ranger pickup go on sale this fall and will plans to get tougher on cel a new plant in Mexico
who has criticized Ford and Ford Bronco SUV. be exported to more than China or on automakers and instead use capacity
for making vehicles out- Ford also said Tuesday that 55 markets globally, the who leave the U.S., White at another plant in Mexico
side the U.S., Ford said the it plans to invest $900 million company said. The invest- House Press Secretary Sean to build the Focus. q

FedEx tops Wall Street 4Q forecasts

MEMPHIS, Tenn. (AP) — and executives predicted around Black Friday and
Shares of FedEx Corp. rose another season of record Christmas.
in late trading Tuesday pickups and deliveries later FedEx said it earned $1.02
after the company’s lat- this year. billion in its fiscal fourth
est quarterly profit beat Executives said they are quarter, which ran from
Wall Street expectations considering additional holi- March through May, com-
on higher rates and an in- day-season surcharges but pared with a loss of $70 mil-
crease in deliveries. have not made any deci- lion a year earlier.
FedEx is being lifted by the sions. Excluding pension valua-
growth in online shopping, The day before, rival Unit- tions, restructuring costs
ed Parcel Service Inc. an- and other items, the Mem-
nounced new surcharges phis-based company said
for peak shipping weeks it earned $4.25 per share. In this April 10, 2017, photo, a FedEx envelope is placed into a
dropbox in North Andover, Mass. FedEx Corp. reported earn-
ings, Tuesday, June 20, 2017.
(AP Photo/Elise Amendola)
That handily beat the $3.89 unit boosted revenue by 9
per share average forecast percent and income by 7
from 10 analysts surveyed percent.
by Zacks Investment Re- The results marked a re-
search. bound from the company’s
Revenue rose 21 percent disappointing third-quarter
to $15.73 billion, with about numbers.
two-thirds of the increase For the fiscal year, FedEx
due to the acquisition of reported profit of $3 billion,
Dutch delivery company or $11.07 per share, on rev-
TNT Express. enue of $60.32 billion.
The analysts had expected The company forecast
$15.56 billion. earnings in its new fiscal
In FedEx’s express air-deliv- year of between $12.45
ery business, revenue rose 7 and $13.25 per share.
percent and operating in- The shares rose less than
come climbed 14 percent. 1 percent in aftermarket
The big ground-delivery trading.q