Ford's Net Income Falls in First Quarter
Ford reported that its first quarter net income reached $989 million, down 39 percent from the same period a year ago. In North America, a strong product lineup wasn't enough to spur gains for Ford. Pre-tax profit dropped from $2.39 billion to $1.5 billion this past quarter. Ford attributes the decline to high warranty expenses, including recalls, as well as "weather-related costs." Lower prices on its models also didn't help matters. Ford's market share also dropped to 15.3 percent in the region last quarter because of a decline in rentals and a lower small car retail share. Overall, Ford's global wholesale volume and revenue both increased from a year ago, despite the net profit loss. Continued growth in Asia, particularly in China, helped boost numbers for the company. Europe, however, has long been a sore spot for Ford. Luckily, the company managed to reduce its loss by more than half. Despite the losses, Ford confirmed its estimate that it will achieve $7 billion to $8 billion in pre-tax profit for the full year. Ford plans on launching 23 new global vehicles in this time frame. With the new Mustang and F-150 on the way, we don't think Ford has much to worry about in the long run. Source: Ford
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