Ford Share goes down on job cut and profit projection reports

Ford Share goes down on job cut and profit projection reports

Ford yesterday reported that they were going ahead with plans to cut more jobs and released a reduced profit forecast for the current year. The company blamed these steps on decreasing automobile sales in the North American region. The news led to a downfall of Ford shares by nearly 5 percent in early trading on Wednesday.

The company has now lowered its full-year profit forecast to $1 to $1.25 per share from $1.25 to $1.50 per share reported earlier. The shares were down 45 cents at USD 10.72 on the New York Stock Exchange. The Ford Bonds also took a beating in the market after the warning.

This depreciated forecast was the second for the company in this year alone. They had previously announced a lowered earning forecast in the month of April. Their market share in the US market at present is around 18%, which is 0.8% lower than from last year. Market analyst Mike Bruynesteyn said in a note to clients: “We estimate that Ford’s U.S. market share will fall by more than any other in the medium term.”

The company would be hoping that their latest employee incentive scheme to bring in more customers would help them improve the dampening situation and the sales figures. They are offering cash to their workers for bringing in business through their relatives and friends.