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
- Prince Harry & Camilla Thurlow Getting Serious, St. Tropez Holiday Before The Prince’s 30th Birthday [PHOTOS]
- Angelina Jolie & Brad Pitt Heads to Malta For New Movie After A Whirlwind French Wedding [PHOTOS]
- Prince William & Kate Middleton Caught Flirting In A Countryside Dinner Date [PHOTOS]
- Chris Martin Getting Serious With Jennifer Lawrence, Actress Joining Coldplay Tour [PHOTOS]
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
- Apple iPhone 6 Actual Release Date after September 9 Confirmed 128GB Variant with New Resolution
- Moto G2 Release Roundup: Specs, Pricing, and Release Date Details
- PlayStation 4 Killing Xbox One Costing Microsoft Millions But It's Fine
- Google Chrome 64-bit for Windows 8 and Window 7 with Mac Beta Available
- Apple iOS 8 vs Android 5.0 L: OS Wars Puts Android to Lower while Apple to Higher
- Nexus 6 on Release Date Confirmed with Phablet-Size Display as FCC Filing Hints of 5.9-Inch Screen
- Google Can Kill Samsung with Android KitKat and Android One: Here's How