This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Ford Sees $2B Europe Loss in 2013 (Update 1)

Stocks in this article: F

Updated to reflect chief financial officer's discussion of Europe loss on fourth-quarter earnings conference call

DETROIT ( TheStreet) -- Ford (F) expects to lose $2 billion in Europe this year, wider than its $1.8 billion loss in 2012, Chief Financial Officer Bob Shanks said Tuesday.

Speaking on Ford's fourth-quarter earnings conference call, Shanks said European full-year industry volume will be at the lower end of an estimated 13 million to 14 million units, while Ford will have higher pension costs than anticipated.

"We're on track to deliver a European transformation plan," Shanks said. The plan includes higher costs for restructuring, investment in new product and accelerated depreciation for plants that will close. "These are the investments we must make now to enable the transformation of our European business for growth in the future," he said.

In the fourth quarter, Ford topped fourth-quarter analysts' estimates as it reported record results in North America.

Excluding items, the automaker reported net income of $1.6 billion, or 31 cents a share. Analysts surveyed by Thomson Reuters had estimated 25 cents. Revenue rose 1.9% to $36.5 billion. Analysts had estimated $32.9 billion.

"The Ford team delivered strong results once again, underscoring that our One Ford plan is working," said CEO Alan Mulally, in a prepared statement. "We are well positioned for another strong year in 2013, as we continue our plan to serve customers in all markets around the world."

In North America, Ford reported pretax profit of $1.9 billion, up from $900 million in the same period a year earlier. Pretax profit was $145 million in South America and $39 million in Asia. But Ford lost $732 million in Europe.

For the full year, Ford reported net income of $5.7 billion, or $1.42 a share.

Ford shares fell 3.5% in Tuesday trading to $13.31.

-- Written by Ted Reed at the Detroit Auto Show.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,617.81 +260.94 1.50%
S&P 500 2,039.93 +27.04 1.34%
NASDAQ 4,707.4120 +63.10 1.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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