Saturday, June 30, 2012

Shares of Ford driving south after warning

John Sommers Ii / REUTERS

A Ford assembly plant in Louisville, Ky.

By Roland Jones

Shares of U.S. automaker Ford are driving south Friday, down 4 percent to just below $9 amid concerns about the company?s losses overseas.

Ford?s shares bucked the performance of the overall market, which rallied strongly Friday after eurozone leaders agreed to allow rescue funds to be used to stabilize the region's banks.

Ford said in a government filing late Thursday that its second-quarter profit will come in below the $2.4 billion it made last year. Ford now expects to lose about $570 million outside North America in the quarter -- three times the $190 million pre-tax loss incurred in the first quarter.

?We continue to expect good results for Ford North America and Ford Credit during the second quarter, but our operations outside of North America are under increasing pressure,? the company said.

Ford said its South America unit is facing growing competitive and pricing pressures, as well as weakening currencies and unexpected and adverse changes in government policies that affect trade and access to foreign currency.

In Europe, Ford said ?the situation has deteriorated significantly? since the automaker gave guidance on at the beginning of the year.

?Given our strong presence in the region, we are impacted by the serious economic crisis, compounded by an intensifying competitive environment as manufacturers react to lower consumer demand and excess production capacity,? Ford said.

For a complete list of the latest market movers click here.?

Source: http://marketday.msnbc.msn.com/_news/2012/06/29/12482281-shares-of-ford-driving-south-after-warning?lite

roddy white roddy white howard stern howard stern free shipping day free shipping day golden globe nominations 2012

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.