Ford shows massive drop in earnings

Ford shows massive drop in earnings

One of the giants of the auto industry of the United States, Ford Motors has reported 19% drops in profits. The reasons behind these falling figures is said to be falling sales and harsh competition in the market. The domestic market has been the cruelest for the company as the Americans have expressed their liking for the Japanese import from Toyota and Honda. They lost around USD 900 million in their local market alone!

The company reported $946 million or 47 cents a share earnings. These figures are a massive fall from the profit of $1.2 billion, or 57 cents a share, a year earlier. The company benefited from their financing arm, which contributed a lot to their bottom-line. Now, the latest information from the company is that they are expecting a full year loss from their automotive business.

Chairperson and Chief Executive Bill Ford said in a statement to the market: “Despite profitability in most regions, our global automotive results were disappointing, reflecting the fiercely competitive environment in which we continue to operate, particularly in North America”. The company has recently taken steps to cut costs and increase sales by offering special schemes to their customers.

Their prime competitor in the American market General Motors are due to report their figures today.