Ford stock (F) is down in early morning trading on news that its quarterly earnings report missed analyst expectations.
Ford reported that its net income fell 39% in the first quarter — in part because of a charge for downsizing its European operations and higher warranty costs.
Ford stock is down 2.9% in early Friday trading.
The automotive company earned $989 million in Q1 (24 cents per share), down from $1.61 billion in the same period a year earlier.
Not including a $122 million one-off charge for European job cuts, Ford earned 25 cents — far short of the 31 cents a share expected by analysts.
Via USA Today:
Last quarter, Ford estimated that its 2014 profit would be $7 billion to $8 billion. It also warned that its operating margin would be lower than it was last year. The company cited pricey new model launches, which no doubt includes the much-publicized aluminum 2015 Ford F-150.
The company has seen strong profit growth in recent quarters – and years – and hasn’t been bedeviled with the kind of high-profile safety scandals of its rivals, General Motors and Toyota.
Ford tried to put a positive spin on the year ahead, saying they were on track for solid full-year earnings.
“Two-thousand fourteen is shaping up to be another solid year for the Ford Motor Company,” Ford Chief Executive Alan Mulally said in a statement.
Ford stock is up 2.9% year to date.