NEW YORK (TheStreet) -- Shares of Ford Motor Co. (F) are lower this morning after the automaker late yesterday warned it expects its South American operations to post a "significant" loss in the current quarter, pointing to macroeconomic effects, including weak currencies and low volumes, the Wall Street Journal reports.
The stock is down -0.39% to $16.73.
At a Deutsche Bank (DB) conference, Ford said its results in the region should improve from the first quarter when it posted a pretax loss of $510 million.
It also said it expects to be profitable in South America in the second half, helped by a higher market share, increased pricing and the launch of the Ka small car. For the year, however, the loss will be wider than 2013.
The company again reaffirmed its pretax profit guidance for the year of $7 billion to $8 billion, excluding special items, the Journal 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 a few notable 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 revenue growth, good cash flow from operations, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."