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Ford Misses Top- And Bottom-Line, Blames Weather And FX

Tyler Durden's picture




 

Claiming $100 million in North American weather-related costs, and $310 million losses due to the devaluation of the Venezuelan currency, Ford Motor Company missed revenues and earnings quite significantly:

  • *FORD 1Q AUTOMOTIVE REV. $33.9B, EST. $34.2B
  • *FORD 1Q ADJ. EPS 25C, EST. 31C

Furthermore, Ford lost market share (for 0.6 percentage points to 15.3%) and expected operating cash flow in 2014 to be substantially lower than 2013. Ford is trading down 3% in the pre-market.

 

 

As Bloomberg reports,

Ford Motor Co., beset by higher warranty costs and bad weather, earned a first-quarter net income of $989 million, down 39 percent from a year ago and less han analysts’ estimates.

 

Ford reported net income of 24 cents a share, down from $1.6 billion, or 40 cents, a year earlier. Excluding one-time  costs, the profit was 25 cents a share, trailing the 31-cent  average estimate of 15 analysts surveyed by Bloomberg.

 

Ford attributed the miss to an extra $400 million in warranty and recall expenses, $100 million in North American weather-related costs and $310 million to account for the devaluation in the Venezuelan currency. Ford said it will now lose more money in South America this year than the $34 million it lost last year, which is a change from its previous guidance.

But there's always the next quarter... it seems they didn't quite kitchen sink it.


 

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Fri, 04/25/2014 - 07:29 | 4694418 GetZeeGold
GetZeeGold's picture

 

 

I never had a playground like that growing up.

Looks like springtime has finally hit Detroit!

Fri, 04/25/2014 - 07:28 | 4694423 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

I guess the stuffed channels are full. Dealers are taking it in the shorts.

Fri, 04/25/2014 - 07:33 | 4694444 negative rates
negative rates's picture

What about all the wrecks that sent those future clunkers to an early grave, don't we include the other side of the equation?

Fri, 04/25/2014 - 07:36 | 4694454 old naughty
old naughty's picture

Weather: "What is this sh't keep blaming me for?"

" I am mad as hell. And I am not taking this any more !"

 

oooops.

Fri, 04/25/2014 - 07:29 | 4694430 Sudden Debt
Sudden Debt's picture

we had to pay 15 euro's for one hour at the paintball range!! Those kids are so lucky...

Fri, 04/25/2014 - 08:01 | 4694527 BandGap
BandGap's picture

Very poor technique. These guys won't last long.

Fri, 04/25/2014 - 07:29 | 4694420 Max Damage
Max Damage's picture

No Fords in that pic, so even the gangsta kids know not to buy a Ford

Fri, 04/25/2014 - 07:30 | 4694433 GetZeeGold
GetZeeGold's picture

 

 

Only DC interns buy Fords.

Fri, 04/25/2014 - 07:34 | 4694448 negative rates
negative rates's picture

The blacks are still buying trucks, so they should stay on top of the heap of junk.

Fri, 04/25/2014 - 07:40 | 4694453 XAU XAG
XAU XAG's picture

FORD

Stands for

 

Fix

Or

Repair

Daily

 

On another note

 

An accounts working on the sales side said he did not understand why they built and sold cars (as there was no money in it)

He then worked on the spare parts side...............and said "now I know why you build and sell cars"

 

 

And to show I am not racist

Fiat

 

stands for

Fix

It

All

Time

Fri, 04/25/2014 - 07:28 | 4694421 Sudden Debt
Sudden Debt's picture

they don't carry any spare clips so there's no real danger I guess :)

Fri, 04/25/2014 - 07:35 | 4694451 negative rates
negative rates's picture

Bang Bang, your dead, 50 bullets in your head.

Fri, 04/25/2014 - 07:42 | 4694476 JoBob
JoBob's picture

negative rates: "Bang Bang, your dead"

No, it's "YOU'RE", not "your".

Behave in public.


Fri, 04/25/2014 - 07:39 | 4694465 thethirdcoast
thethirdcoast's picture

Sorry, but vehicles in Michigan don't have front plates or windshield stickers.

 

Thanks for playing, better luck next time.

Fri, 04/25/2014 - 07:57 | 4694516 Headbanger
Headbanger's picture

Good catch!   That plus the fact that WCA trash services are not in Michigan..

http://wcawaste.com/locations

And that is most definitely a Texas license plate

https://www.google.com/search?q=texas+license+plates&client=firefox-a&hs...

So more like Dallas??

Fri, 04/25/2014 - 07:47 | 4694496 adr
adr's picture

That picture is actually Houston. Pretty nice cars for Section8, but you see that almost everywhere in the ghetto. Baby gots a Jaguar with 'Bamacash.

Fri, 04/25/2014 - 07:35 | 4694452 NoDebt
NoDebt's picture

Higher warranty costs = piece of crap "EcoBoost" engines blowing up left and right.  Put an undersized motor in a vehicle, slap a turbo on it, boost it to the moon to force it to make adequate power and watch them spit head gaskets and crack over-heated exhaust parts like a 4th of July fireworks show.

Fri, 04/25/2014 - 07:52 | 4694504 adr
adr's picture

Try towing anything with the ecoboost 150. After twenty miles the truck will go into limp mode without the turbo, soon after the engine overheats and cracks develop almost everywhere in the engine.Forget about cold weather performance as well.

Fri, 04/25/2014 - 08:33 | 4694638 NoDebt
NoDebt's picture

Yep, built Ford tough, baby.  But not to last.  Ah well, that's what warranties are for.  Just that Ford never expected there to be so many of them.  "You mean people actually believed us when we said this little motor could tow their boat to the lake??"

My brother witnessed first hand what happens to an F-150 "EcoBoost" motor when his friend's brand new one did it's first long-distance tow.  He was in the truck when lights stated popping on all over the dash.  His buddy said "I think the motor just blew."  He didn't want to believe it at first, but yeah, sucker was done.  Less than 3K on the odo.

Fri, 04/25/2014 - 08:45 | 4694688 tarsubil
tarsubil's picture

I thought the Boeing guy would help but guess not. Ford is such a sad story.

Fri, 04/25/2014 - 07:40 | 4694469 caShOnlY
caShOnlY's picture

If Ford lost 310 million because of Venezuelen currency devaluation, how did GM do in China?   

Currency wars are all fun and games when you have no export base and devalue to raise corporate profit/share prices.  Looks like that party is coming to an end and tariffs only hurt the consumer/retailer.  So we are going to skip that part of the depression and go straight to HOT WAR.

Fri, 04/25/2014 - 07:49 | 4694497 Bernoulli
Bernoulli's picture

Funniest weather blame today by UPS (FT Europe paper copy of today, page 12):

""We were clearly hit awfully hard in the US by the weather," Kurt Kuehn, chief financial officer, said.

...

In addition to the weather disruptions, operating margins suffered from online retailers' increased use of slower, cheaper services to serve customers.

...

Mr. Kuehn said it was not necessarily a "big problem" that margins on shipments were decreasing in the face of the "incredible growth" in business to consumer shipments the company was experiencing".

Bullish?

Also: How about making this weather thing a regular excuse? Here some templates:

"Climate change clearly hit us awfully hard"

"Summer was clearly awfully hot, we needed extra time to put on sun screen, which is why efficiency was down and operating costs up"

"Night was awfully dark, moon didn't shine as expected at all"

"Rain was terribly wet and roads were slippery (forgot my umbrella a lot of times), therefore revenue down"

Fri, 04/25/2014 - 07:52 | 4694505 Fuh Querada
Fuh Querada's picture

GAAP or non GAAP? I thought accountants could create any f***ing set of figures they want....

Fri, 04/25/2014 - 07:57 | 4694515 GetZeeGold
GetZeeGold's picture

 

 

Who does GAAP anymore?

Fri, 04/25/2014 - 09:20 | 4694841 Bernoulli
Bernoulli's picture

Exactly. They used to be Generally Accepted... But now, nobody cares.

Non-GAAP should be renamed into IUAP (International Unicorn Accounting Principles). Sounds much more serious.

Fri, 04/25/2014 - 08:26 | 4694610 Smegley Wanxalot
Smegley Wanxalot's picture

GM could at least blame it on a recall. 

Ford can blame it on ... Ford.

Fri, 04/25/2014 - 08:27 | 4694612 ThisIsBob
ThisIsBob's picture

Over the past few years they have turned a perfectly utilitarian F-150 into a luxurymobile.  Screw them.  I drive what the Taliban drive - a Toyota.

Fri, 04/25/2014 - 08:43 | 4694680 esum
esum's picture

blame it on the bossanova...... 

Fri, 04/25/2014 - 08:45 | 4694689 Chippewa Partners
Chippewa Partners's picture

Just drove 2000 miles across America.  Every single car dealership was absolutely stuffed with new vehicles for sale.   In some places you couldn't get another car on the lot.

Huge demand this spring or simple channel stuffing?  

Fri, 04/25/2014 - 09:18 | 4694819 Spungo
Spungo's picture

It was so cold outside that people couldn't help but walk everywhere. Or they were smart enough to buy a Subaru. I miss my Subaru. That fucker NEVER got stuck. 

Fri, 04/25/2014 - 09:27 | 4694876 Spungo
Spungo's picture

Only white people care about The GAP earnings

Fri, 04/25/2014 - 10:17 | 4695080 Jameson18
Jameson18's picture

Maybe they should call CAT and get advice on how to buy back their stock. That will show them.

//
Fri, 04/25/2014 - 11:19 | 4695303 VWAndy
VWAndy's picture

Free market crapitolism.

Fri, 04/25/2014 - 12:17 | 4695615 JuliaS
JuliaS's picture

Blaming the weather? Hmm... weather is part of changing climate. Climate change wouldn't be an issue if it weren't for Al Gore. Al Gore is politician working for the government. Hence, the government is responsible for poor sales!

Tada!

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