Ford stocks tumble more than six percent on poor 2014 profit outlook
AFPNEW YORK--Ford Motor shares tumbled more than six percent Wednesday after the company forecast disappointing 2014 profit and said its mid-decade profit margin target was at risk.
December 20, 2013, 12:09 am TWN
Ford signaled some headwinds to 2014 profit following a 2013 that it rated “one of the best full-year results in its history,” due to greater automotive revenues and higher market share in most regions.
The company expects full-year 2014 pre-tax profit to come in at US$7-$8 billion, below the US$8.5 billion expected for 2013. Most analysts were projecting profits to rise in 2014.
The 2014 profit figure is “substantially below our estimates and even more so the street,” said a note from Deutsche Bank, which had previously forecast 2014 profits of US$9.8 billion.
Ford said earnings will be dragged down from the effects of an unusually busy schedule of new auto launches in 2014 that will cause higher startup costs and force lower prices on vehicles being phased out.
Near 1715 GMT, Ford shares fell 6.7 percent to US$15.57 after trading as low as US$15.17 earlier in the session.