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.
[4]
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.