Ford Earnings Beat Estimates But Outlook Sends Shares Down
By Angelo Young | January 30, 2013 4:27 AM EST
Ford Motor Co. (NYSE:F) beat analysts’ earnings expectations for its fourth quarter and 2012 earnings, but the No. 2 U.S. automaker warned of bigger losses in the struggling European market and forecast weak sales in South America.
That forecast sent shares of the No. 2 carmaker falling as much as 6 percent Tuesday before recovering slightly at midday to $12.99, down 79 cents.
Ford's operating profit was 31 cents a share in revenue of $36.5 billion, largely coming from U.S. sales. Analysts polled by Thomson Reuters had expected earnings of only 25 cents a share.
For the full year, the Dearborn, Mich.-based auto giant reported $1.41 a share of operating profit on revenue of $134.3 billion, beating the $1.35 a share forecast on an estimated $125 billion of revenue.
“The Ford team delivered strong results once again, underscoring that our 'One Ford' plan is working,” said Allan Mulally, Ford CEO. "One Ford" is the company’s ongoing restructuring plan aimed at lowering production costs. For example, the company is moving away from creating different versions of the same model to sell in different global markets.
But the company lost $1.75 billion in Europe last year, more than the expected $1.5 billion. Sales in Latin America are expected to be “breakeven” in 2013, executives said.
“In addition, government actions to incentivize local production and balance trade are driving trade frictions between South American countries and also with Mexico, resulting in business environment instability and new trade barriers,” the company said in a statement filed with the Securities and Exchange Commission.
To contact the editor, e-mail:
Most Popular Slideshows
- Still The World Champions: Team USA Overpowers Serbia, 129-92 To Win 2014 FIBA World Cup [PHOTOS]
- Pope Francis: World War III Has Started On Piecemeal
- After Win Over Maidana, Mayweather Says He Is Prepared To Negotiate A Fight With Pacquiao
- From Fat To Fit: Celebrities Who Were Overweight Before They Became The Beauties That They Are
Join the Conversation
- 2015 Ford Mustang: Right-Hand Drive Pony Car To Be Available In Australia Next Year
- Upcoming Ford Falcon Can Save Life with 000 Technology During Crash
- All-New Mazda2 to Roll Out in Australia This Summer
- Much-Awaited Mazda MX-5 Limited Edition in Australia
- 75 Dead from China Car Parts Plant Blast, Poor Safety Measures Blamed
- Pregnant Kate Middleton May Call Off Malta Trip Due To Sickness: Royal Couple Will Move To Anmer Hall Residence
- iPhone 6 Plus vs Xiaomi Mi4 – The iPhone Killer Certainly Can Battle Well With The New Apple Phablet
- Apple iOS 8 Can Trump Google Android 5.0 L Upon September 17 Release
- Ukraine Crisis: Poland Denies Supplying Weapons To Kiev
- Twitter Photo Of British Medical Muslima Student Holding Severed Head
- Google Nexus 8 Release Date Countdown Begins Oct 8: 8 Killer Specs and Features to Expect
- Malaysia Airlines Flight MF 370: Indonesian Police Chief Claims He Knows What Happened To Missing Jet