VISITOR
01-27-2012, 03:52 PM
Ford shares slump on disappointing results.
Ford Motor (F -3.57% (http://investing.money.msn.com/investments/stock-price?Symbol=f&ocid=qbeb)) is the only car company of the Big Three not to end 2011 on a high note. The only one of the three that didn't need a government bailout has stumbled as its rivals (http://www.reuters.com/article/2012/01/27/us-ford-idUSTRE80Q00U20120127) have gained.
Net income at the Dearborn, Michigan-based company reported net income of $13.6 billion, or $3.40 per share, versus $190 million, or 5 cents per share the year before. Excluding one-time items, profit was $1.1 billion, or 20 cents per share, 5 cents below Wall Street consensus forecasts. Revenue rose to $34.6 billion.
Ford's strength in the U.S. was offset by weakness in other parts of the world. Ford's loss in Europe almost quadrupled to $190 million, while its operations in Asia Pacific and Africa swung to an $83 million loss as the floods in Thailand hurt its bottom line. The company's South American business reported a profit from continuing operations of $108 million, but that was a decline from $281 million a year earlier as competition intensified.
Meanwhile, General Motors (GM -1.09% (http://investing.money.msn.com/investments/stock-price?Symbol=gm&ocid=qbeb)) and Chrysler Group, which needed government help to avoid collapse, are on a roll. GM recently regained the crown as the world's largest automaker after reporting 2011 global sales of 9.026 million, a 7.6% increase from 2010 (http://www.reuters.com/article/2012/01/20/us-gm-idUSTRE80I2EY20120120). Chrysler's results were even better. It sold 1.37 million units in 2011, a gain of 26% from 2010 -- the largest gain of any full-line manufacturer. Chrysler reported its biggest monthly sales (http://media.chrysler.com/newsrelease.do?id=10622&mid=2) gain in December in four years.
As competition rises, Ford may have to offer additional incentives to bolster sales. CEO Alan Mullaly foresaw the financial crisis before most people. Let's hope his crystal ball has not become too dusty.
Ford Motor (F -3.57% (http://investing.money.msn.com/investments/stock-price?Symbol=f&ocid=qbeb)) is the only car company of the Big Three not to end 2011 on a high note. The only one of the three that didn't need a government bailout has stumbled as its rivals (http://www.reuters.com/article/2012/01/27/us-ford-idUSTRE80Q00U20120127) have gained.
Net income at the Dearborn, Michigan-based company reported net income of $13.6 billion, or $3.40 per share, versus $190 million, or 5 cents per share the year before. Excluding one-time items, profit was $1.1 billion, or 20 cents per share, 5 cents below Wall Street consensus forecasts. Revenue rose to $34.6 billion.
Ford's strength in the U.S. was offset by weakness in other parts of the world. Ford's loss in Europe almost quadrupled to $190 million, while its operations in Asia Pacific and Africa swung to an $83 million loss as the floods in Thailand hurt its bottom line. The company's South American business reported a profit from continuing operations of $108 million, but that was a decline from $281 million a year earlier as competition intensified.
Meanwhile, General Motors (GM -1.09% (http://investing.money.msn.com/investments/stock-price?Symbol=gm&ocid=qbeb)) and Chrysler Group, which needed government help to avoid collapse, are on a roll. GM recently regained the crown as the world's largest automaker after reporting 2011 global sales of 9.026 million, a 7.6% increase from 2010 (http://www.reuters.com/article/2012/01/20/us-gm-idUSTRE80I2EY20120120). Chrysler's results were even better. It sold 1.37 million units in 2011, a gain of 26% from 2010 -- the largest gain of any full-line manufacturer. Chrysler reported its biggest monthly sales (http://media.chrysler.com/newsrelease.do?id=10622&mid=2) gain in December in four years.
As competition rises, Ford may have to offer additional incentives to bolster sales. CEO Alan Mullaly foresaw the financial crisis before most people. Let's hope his crystal ball has not become too dusty.