As General Motors (GM) went through its recalls this year, it was easy to feel confident in Ford Motor (F), which appeared to have avoided most of its competitor’s missteps. Until today that is.
Reuters Shares of Ford plunged more than 7% today, with much of that occurring during the last hour of trading, after the automaker warned that its previous earnings guidance was way to high. The Wall Street Journal has the details:
Ford Motor Co. warned operating profit this year would be sharply below its earlier estimate, citing higher than expected warranty costs for auto-safety recalls and weakness in Europe.
The nation’s no. 2 auto maker said it expects before-tax earnings of between $6 billion and $7 billion for the full year, compared to a January forecast of between $7 billion and $8 billion.
Shares of Ford dropped 7.5% to $15.11 today–and is down another 0.6% in after-hours trading–while General Motors fell 2.9% to $32.22 today.
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