The auto industry rebound that started earlier this week with impressive earnings results at Chrysler ran into a bit of a minor speed bump today as Ford (NYSE:F) who has has experienced a renaissance of sorts along with the rest of the industry, reported a decline in first quarter profit due to a slump in demand in Europe and Asia.
Strong results from North America were enough to offset the declines, however, and profit and revenue in came ahead of analyst’s estimates.
Ford reported net income of $1.4 billion, or 35 cents per share, down from a year ago profit of $2.5 billion, or 61 cents a share. On an adjusted basis, the company would have earned 39 cents, topping estimates by 4 cents. Revenue during the quarter slid 2% to $32.4 billion, slightly above estimated $32.3 billion.
Ford lost money in Europe, where sales slumped by 60,000 vehicles, and Asia, where sales fell by 25,000 as China’s appetite for new cars slowed.
However on the positive side, in North America, Ford recorded its highest quarterly profit since 2000. Pretax profit for the region rose 17% to $2.1 billion.
Ford shares traded down 1.5% immediately after the earnings release, and are holding steady near $11.70 at mid-day.
Wall Street will focus their attention on earnings from General Motors (NYSE:GM) which will be released before the market opens on May 3. GM is also trading down this morning.