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"Reaffirmation by F"-Lower End of Guidance, Ex-Special items

Ford reaffirms 2005 financial outlook
By Jim Jelter, MarketWatch
Last Update: 1:18 PM ET March 16, 2005
http://www.marketwatch.com/news/story.asp?guid=%7BB25C148A%2D6F6F%2D4A57%2DB504%2DBB3A7B2D1A7A%7D&am...

SAN FRANCISCO (MarketWatch) -- Ford Motor Co., seeking to reassure investors, said Wednesday that it remains on track to hit previously announced financial targets in 2005, though at the low end of its range. The announcement comes hard on the heels of a warning from rival General Motors, in which the nation's No.1 carmaker slashed its outlook for the rest of the year, citing slumping sales in North America. See full story.

Citing the guidance it gave investors in January, Ford (F: news, chart, profile) predicted it would turn in profits of 25 cents to 35 cents a share for the first quarter and $1.75 to $1.95 a share for the full year, excluding special items.

"The market is not getting easier and we certainly face many challenges, but we are maintaining our full-year earnings guidance, although we expect to be at the lower end of the range," Chief Financial Officer Don Leclair said in a statement

GM's (GM: news, chart, profile) warning knocked its stock down 13.6 percent to $29.13, a 12-year low, and dragged the rest of the auto sector lower.

For their part, Ford shares fell 3.3 percent to $11.83 while the third leg of the Big Three, DaimlerChrysler (DCX: news, chart, profile) , slid 1.6 percent to $45.37.

Ford plans to release its first-quarter results and update its full-year outlook on April 20.