NEW YORK (TheStreet) --Ford Motor Co. (F) - Get Report President and CEO Mark Fields spoke with BloombergTV''s Matt Miller today on "Bloomberg Markets: European Close" and discussed the impact the Brexit vote had on 2016 second quarter earnings and will have moving forward.
Ford posted mixed 2016 second quarter earnings before markets opened on Thursday. The automotive company reported earnings per share of 52 cents below estimates of 60 cents, however posted revenue of $39.49 billion above the projected $36.31 billion.
"The U.K. is our largest business in Europe, it represents 30% of our sales. This year the good news is that we're fully hedged against the pound. But as you saw in this quarter we're not hedged against the balance sheet and the lower pound hit our profit sheets for about $60 million," Fields explained
Fields sees about a $200 million drop in total business for this year in the automotive industry, and depending on the U.K. and the decisions they make with the European Union, that figure could move even higher.
Fields concluded by saying his expectations for the evolving situation between the U.K. and the EU will not deter the company from maintaining focus.
"As it stands right now we're not making any changes to our operating structure and we will stay focused on making sure that we maintain competitiveness in the region, and putting ourselves on a path of sustained profitability," Fields said.
Shares of Ford are lower 9.68% to $12.51 Thursday afternoon.
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Separately, TheStreet Ratings rates Ford as a "Buy" with a ratings score of "B-." This is driven by a few notable strengths, which TheStreet Ratings believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks TheStreet Ratings covers.
The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, attractive valuation levels, good cash flow from operations and impressive record of earnings per share growth. TheStreet Ratings feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that TheStreet Ratings evaluated.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: F