Ford Motor Company (F)

[Seminole Red]

FORD TANKS ON POOR OUTLOOK — Detroit News’ David Shepardson: “Ford Motor Co. said its Friday recall of 850,000 vehicles for airbag problems will cost the company $500 million and reduce its profit outlook for the year, as the stock plunged 7.5 percent. Ford stock sank by $1.22 a share to $15.11 … and continued to fall in after-hours trading. The company announced some other bad news: a $1 billion forecasted loss in South America — much higher than previously forecast — and a $1.2 billion loss in Europe, also above other forecasts. Ford briefly fell below $15 a share for the first time since February.

“At the company’s investor day on Monday, Ford Americas chief Joe Hinrichs said the recall will mean the company’s profit margins this year will be on the low end of the 8-9 percent forecast, saying it will amount to a ‘significant’ impact on the company’s performance. The company is upping its costs for recalls and warranty reserves by $1 billion, including the $500 million recall charge.”
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