Ford shares sink after profits drop

Written By limadu on Jumat, 25 April 2014 | 05.32

ford assembly line

Ford posted lower earnings in the first quarter - its first drop since 2012.

NEW YORK (CNNMoney)

The company also fell below expectations set by Wall Street analysts for the first time since 2011. And it repeated its earlier guidance for lower pretax earnings for the year because of the cost of rolling out new models.

Ford (F, Fortune 500) shares, which have been performing much better than rivals General Motors (GM, Fortune 500) and Toyota Motor (TM) this year, were down in premarket trading.

Related: Reports - Ford decides on CEO succession

The company reported narrowly higher revenue and global auto sales. But the profit tumbled 39% to $989 million.

The drop was due to problems in its core North American auto operations, where pretax earnings fell by $892 million. The company partly blamed bad weather for slower sales. It also increased reserves for warranty work on prior year models, including those involved in recalls.

But North America wasn't the only problem; losses also increased in South America. All told, results in North and South America weighed against improved results in Europe, Asia-Pacific and the rest of the world. To top of page

First Published: April 25, 2014: 7:52 AM ET


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