This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Ford CEO: 'We Just Don't Know About Europe'




By Phil LeBeau, CNBC Correspondent

NEW YORK ( CNBC) -- As Ford (F) posted better than expected first quarter earnings (39 cents a share vs. 35 cent estimate), the automaker finds itself working in two worlds.

Europe Struggles

Europe swung to a loss of $149 million (vs. profit of $293m last year) as sales dropped (down 60,000) and revenue plunged (down $1.5 billion) in a continent where the economy is reeling.

Ford CEO Alan Mulally is unsure Europe's economy has bottomed out. "We just don't know about Europe," said Mulally. "So we're going to continue taking down shifts, cutting costs and try to minimize our losses."

More from CNBC
Yes Mustang Fans, Even Iconic Cars Need to Be Updated
China's Love Affair With SUVs
Is Selling Scoops Really Insider Trading

Mulally won't say if Ford plans to close any plants in Europe. With no improvement in the European economy expected soon he added, "Ford has a track record of making sure production matches demand and that will be the case in Europe this year."

North America Revs Up

While Ford is struggling in Europe, it is thriving in North America. In Fact, during Q1 Ford earned $2.1 billion, its best quarter since 2000. Even more impressive, Ford's profit margin in North America climbed to 11.5% (vs. 10.3% last year).

Mulally is optimistic those margins and strength will continue as Ford stays disciplined about pricing and production. "We're not going to build and sell cars and trucks just to get market share" said Mulally. "We have a plan and will stay disciplined."

Managing the two worlds Ford finds itself in means trying to convince Wall Street that it can manage the weakness in Europe. Traditionally, it has done better than GM and other competitors in managing its European operations. A challenge it will face for the foreseeable future in that continent.



--Written by Phil LeBeau at CNBC

CNBC is a world leader in business news, providing real-time financial market coverage and business information.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,265.83 -151.02 -0.87%
S&P 500 2,007.56 -13.69 -0.68%
NASDAQ 4,663.9810 -19.4260 -0.41%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs