DETROIT - A top executive Ford Motor Co. said Wednesday that the company's second quarter pre-tax profit in the first quarter due to the increasing raw material and factory production costs could fall down.
Vice President and controller Robert Shanks also said that Ford is expected to be less than pre-tax profit in the second half of the year compared with the same period last year. He said, is the direction in line with what the company said if it published in the first quarter results in April.
"We expected at this time, which would potentially the best of the year be the result in the first quarter," Shanks said an analysts Conference in Chicago. "In the second quarter could be actually very close to the first quarter, perhaps a little lower."
Is in the first quarter fall slightly down and not bad. Ford reported pre-tax income of $2.8 billion, or 62 cents per share. The net profit of us $ 2.6 billion after tax was its best quarterly performance in 13 years.
Shanks statements were clearly preparing Wall Street for the protection of the Ford stock price by earnings. Analysts at FactSet interviewed on Wednesday were forecast, that Ford would make 64 cents per share before taxes in the second quarter.
In the fourth quarter of last year, Ford fell analysts expectations. It reported an 80 percent in profits, missing forecasts and two years of better than expected results. In January announced the result on the day, the Ford, lost more than 13% share and still need to restore. Ford said that it better should have informed $1 billion in North America analysts of potential problems in the quarter, including a loss in Europe and a cost increase.
So on Wednesday, Shanks said structural costs by $2 billion this year due to future investment, increased factory capacity requirements for the sales and the costs for the strengthening of the company brand image would increase. He said also, raw material costs will increase by $2 billion.
He told the analysts that will increase revenue due to higher sales and because Ford expected to keep prices.
The predictions, he said, are also in line with the normal seasonal fluctuations in the car business. The second half of the year is usually a little weaker than the first.
He also said that the company expected to pay dividends to common shares by 2015, as it pays debt is next and their debt ratings, investment-grade.
General Motors co. and Ford tried last week, investors calm, that revenues and profits despite worry about the US economy and slowing auto sales will continue. Automakers with a series of bad news this spring on 11 March earthquake in Japan taken, the traders short on cars to rising gas prices and unemployment. Car sales fell in may US, their first monthly decline this year.
The message failed. GM stocks have sold for $33 per share in a first public stock sale in November last year more than 12 percent of its value lost since. Ford's share price, declined almost 15 percent since the beginning of May.
Shares fell Wednesday to close 28 cents or 2.1 per cent to $13.15 Ford.
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