Ford Motor Company (NYSE:F) Warns Of Lesser Profits Next Year

Posted by Chris Bell December 19, 2013 0 Comment 1494 views

Ford Motor Company (NYSE:F) the much storied and revered car manufacturing company in U.S warned yesterday that it foresees troubled times ahead and has asked its investors to plug in their seat belts as it navigates through the many road blocks it is facing over the next few months.

Alan Mulally Does Some Plain Talking

When this news reached the Wall Street, investors took the advice of Ford Motor Company (NYSE:F) with the seriousness it deserves and enmass decided to exit the stock. Thus in the ensuing stampede the car maker which boasts of a market cap of $61 billion ended up shedding close to 6.2 percent of its market value during trading yesterday. At current depreciated valuation levels the stock is trading 12 percent lower than its 52 week high price points.

These grave warnings were signalled by Ford Motor Company (NYSE:F) chief executive Alan Mulally. He has been credited with the successful turn around the car maker went through in the immediate aftermath of the financial crisis which practically brought corporate America to its knees.

Intense Competition

In his key note speech to the analyst community, the visionary CEO listed out the various challenges he foresee for his company. The long list starts with a dip in profits being anticipated next year due to pressure on sales in its bread and butter market of North America. This sales dip is expected due to increased competition and additional investments being sunk into rolling out new models to keep its customer folk coming back to them for trading in newer models. The aggressive pricing being offered by its competition has forced Ford Motor Company (NYSE:F) to in turn fight back by offering promotional pricing and other customer inducing incentives which are eating into its profits.

About Chris Bell

Chris Bell is an investing reporter for GDP Insider. Chris covers financial markets and Wall Street, concentrating on developments affecting individual investors and their portfolios. Chris is also over consumer reporter and covers a wide variety of issues ranging from housing to immigration to urban poverty. Chris graduated from the University of Scranton with a degree in Communication and Philosophy. Chris's diligent investigations earned him the honor of being named "Best Reporter" once by the Headliners Foundation of Texas and once by the Houston Press Club.

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