NEW YORK (AFX) - Ford Motor Co., citing fierce competition for global auto sales, posted Tuesday a 21% drop in quarterly profit as rival carmakers ratcheted up efforts to sell cars and trucks in the crucial North American market.
The company said net income slid to $946 million, or 47 cents a share, down from $1.2 billion, or 57 cents a share, a year ago.
Earnings from continuing operations came in at $936 million, or 47 cents a share, compared with $1.2 billion, or 61 cents a share, in the year-earlier period.
The results narrowly beat market expectations, sending Ford's stock up 7 cents to $11.00 after dipping briefly at the open on a quick burst of sell orders.
Analysts polled by Thomson First Call expecting earnings, on average, of 33 cents a share with $36.96 billion in revenue.
Ford's total sales grew to $44.59 billion from $42.87 billion.
"Despite profitability in most regions, our global automotive results were disappointing, reflecting the fiercely competitive environment in which we continue to operate, particularly in North America," said Chairman and Chief Executive Officer Bill Ford.
The Big Three are engaged in an employee-discount incentive war for precious market share after General Motors triggered an historic June with its "You Pay What We Pay" program.
Ford's automotive group turned in a loss of $245 million, down from a profit of $97 million a year ago, with North America weighing heavily on the bottom line amid higher costs and lower sales.
The North America division, facing higher costs and lower volume, reported a loss of $907 million. In the year-ago period the unit reported a profit of $454 million.
Land Rover led a rebound in the Premier Auto Group, which posted a profit of $17 million vs. a lost of $347 million last year.
Ford's financial unit, key to the company's profits in recent years, posted earnings of $740 million, down from $897 million a year ago amid higher borrowing costs.
Ford held to its $1 to $1.25 a share earnings outlook for 2005, not including the 21 cents to 30 cents a share charge it will take for restructuring its parts supplier Visteon Corp.
Thomson's First Call target is for $1.07 in income.
Also in the quarter, Ford said it would sell, or spin off in an initial public offering, its rental car unit, Hertz Corp. Second-quarter profit at Hertz rose by $9 million to $153 million.
This story was supplied by MarketWatch. For further information see www.marketwatch.com.
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
The company said net income slid to $946 million, or 47 cents a share, down from $1.2 billion, or 57 cents a share, a year ago.
Earnings from continuing operations came in at $936 million, or 47 cents a share, compared with $1.2 billion, or 61 cents a share, in the year-earlier period.
The results narrowly beat market expectations, sending Ford's stock up 7 cents to $11.00 after dipping briefly at the open on a quick burst of sell orders.
Analysts polled by Thomson First Call expecting earnings, on average, of 33 cents a share with $36.96 billion in revenue.
Ford's total sales grew to $44.59 billion from $42.87 billion.
"Despite profitability in most regions, our global automotive results were disappointing, reflecting the fiercely competitive environment in which we continue to operate, particularly in North America," said Chairman and Chief Executive Officer Bill Ford.
The Big Three are engaged in an employee-discount incentive war for precious market share after General Motors triggered an historic June with its "You Pay What We Pay" program.
Ford's automotive group turned in a loss of $245 million, down from a profit of $97 million a year ago, with North America weighing heavily on the bottom line amid higher costs and lower sales.
The North America division, facing higher costs and lower volume, reported a loss of $907 million. In the year-ago period the unit reported a profit of $454 million.
Land Rover led a rebound in the Premier Auto Group, which posted a profit of $17 million vs. a lost of $347 million last year.
Ford's financial unit, key to the company's profits in recent years, posted earnings of $740 million, down from $897 million a year ago amid higher borrowing costs.
Ford held to its $1 to $1.25 a share earnings outlook for 2005, not including the 21 cents to 30 cents a share charge it will take for restructuring its parts supplier Visteon Corp.
Thomson's First Call target is for $1.07 in income.
Also in the quarter, Ford said it would sell, or spin off in an initial public offering, its rental car unit, Hertz Corp. Second-quarter profit at Hertz rose by $9 million to $153 million.
This story was supplied by MarketWatch. For further information see www.marketwatch.com.
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
© 2005 AFX News
