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Ford Misses Top- And Bottom-Line, Blames Weather And FX
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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Meanwhile in detroit
http://24.media.tumblr.com/6a807375bb065469548914b3f1d7a0da/tumblr_msnjfhg1et1qzpztbo1_1280.jpg
I never had a playground like that growing up.
Looks like springtime has finally hit Detroit!
I guess the stuffed channels are full. Dealers are taking it in the shorts.
What about all the wrecks that sent those future clunkers to an early grave, don't we include the other side of the equation?
Weather: "What is this sh't keep blaming me for?"
" I am mad as hell. And I am not taking this any more !"
oooops.
we had to pay 15 euro's for one hour at the paintball range!! Those kids are so lucky...
Very poor technique. These guys won't last long.
No Fords in that pic, so even the gangsta kids know not to buy a Ford
Only DC interns buy Fords.
The blacks are still buying trucks, so they should stay on top of the heap of junk.
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
they don't carry any spare clips so there's no real danger I guess :)
Bang Bang, your dead, 50 bullets in your head.
negative rates: "Bang Bang, your dead"
No, it's "YOU'RE", not "your".
Behave in public.
Sorry, but vehicles in Michigan don't have front plates or windshield stickers.
Thanks for playing, better luck next time.
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??
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.
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.
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.
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.
I thought the Boeing guy would help but guess not. Ford is such a sad story.
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.
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"
GAAP or non GAAP? I thought accountants could create any f***ing set of figures they want....
Who does GAAP anymore?
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.
GM could at least blame it on a recall.
Ford can blame it on ... Ford.
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.
blame it on the bossanova......
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?
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.
Only white people care about The GAP earnings
Maybe they should call CAT and get advice on how to buy back their stock. That will show them.
//Free market crapitolism.
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!