Ford Slides as Investors Focus on the Negatives

[Stocks-to-Watch]

For Ford (F), it was the best of times, and it was the worst of times.

The company posted its highest annual profit since 1998, but fourth quarter operating earnings missed analysts’ expectations. Pre-tax automotive operating profits slid $155 million to $586 million in the fourth quarter on “higher costs, including higher commodity costs, higher compensation costs in North America related to the new UAW agreement (including the one-time ratification bonus), and unfavorable exchange rates.”

In North America, the company gained market share for the third year in a row, and saw sales rise 11% year over year. But natural disasters hurt profits overseas, and its loss in Europe widened to $190 million from $51 million the year before. In Asia and Africa, the company lost $83 million, versus a $23 million profit the year before.

As has been the case in the past couple of years, investors are seeing the glass as half-empty, rather than half-full. Shares are down 3.6% in midday trading.



Original Article Source by Barrons.com