KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Ford Motor Co. said its 2025 profits will take a sharp hit as President Donald Trump’s escalating tariffs add billions in costs, underscoring how U.S. trade policy is disrupting the global auto industry.
Tariff Impact:
Ford now expects a US$2 billion tariff bill this year, US$500 million higher than previously estimated.
The company cited steel and aluminum tariffs doubling to 50% and extended duties aimed at curbing fentanyl imports as key factors driving costs up.
CEO Jim Farley said the tariffs feel “long term,” warning Ford’s competitiveness is at risk compared with Japanese automakers after the U.S.-Japan trade deal lowered Japan’s tariff rate to 15%.
Financial Outlook:
Ford forecast a 36% drop in adjusted EBIT for the full year.
Second-quarter adjusted earnings came in at 37 cents per share, topping Wall Street’s 33-cent estimate.
Adjusted EBIT for Q2 was US$2.1 billion, also beating expectations.
Business Segment Performance:
Ford Blue (traditional vehicles): US$661M EBIT, down from US$1.2B a year earlier.
Ford Pro (commercial business): US$2.3B EBIT, down from US$2.6B.
Model-e (EV division): Loss widened to US$1.3B as U.S. EV sales plunged 31% due to aging models and a Mach-E recall.
Market Reaction:
Ford shares fell 2.4% in after-hours trading. The stock is still up about 10% year-to-date, outpacing the S&P 500’s 8% gain.
What’s Next:
Farley said Ford will unveil a “breakthrough electric vehicle” and updated EV strategy at an Aug. 11 event in Kentucky, calling it a “Model T moment” for the company.
He also sees growth potential in robotaxis through Ford Pro’s fleet management services.
Summary: Soaring tariffs are slashing Ford’s profit outlook and exposing the auto industry’s vulnerability to shifting U.S. trade policies, even as the company prepares to reset its EV strategy and explore new business opportunities.
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