NEW YORK (TheStreet) -- Shares of Ford Motor Co. (F) are down -2.33% to $15.94 after the automobile company reported lower than expected first quarter profit this morning as it saw higher warranty costs in North America for older vehicles by $400 million, Reuters reports.
The company has seen more field service actions, such as safety recalls and addressing customer complaints, said CFO Bob Shanks.
Net income declined 39% to $989 million, or 24 cents a share, from $1.61 billion, or 40 cents a share, a year ago.
Excluding one-time items for European restructuring, Ford earned 25 cents a share, 6 cents below analysts' estimates in a poll by Thomson Reuters I/B/E/S, or about the same amount as the warranty reserves. Weather costs accounted for an additional 2 cents.
The company affirmed its forecast for pretax profit for 2014. It also said it is amending and extending its revolving credit facility, Reuters noted.
TheStreet Ratings team rates FORD MOTOR CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FORD MOTOR CO (F) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, attractive valuation levels, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."