Ford Motor's first quarter profit was down from the same period last year, battered by higher warranty costs. Earnings were 25 cents per share, missing analysts' expectations by six cents.
Sales were $35.9 billion, up from $33.86 billion a year earlier. Profit was $989 million, down 39% from a year ago.
Ford shares dropped 2% to $15.99 in pre-market trading.
Analysts had estimated revenue of $34.2 billion, according to S&P Capital IQ.
Last quarter, Ford estimated that its 2014 profit would be $7 billion to $8 billion. It also warned that its operating margin would be lower than it was last year. The company cited pricey new model launches, which no doubt includes the much-publicized aluminum 2015 Ford F-150.
The company has seen strong profit growth in recent quarters - and years - and hasn't been bedeviled with the kind of high-profile safety scandals of its rivals, General Motors and Toyota.
Last week, Ford announced that its European sales were up 12% in March and 11% for the first quarter. This marked the company's 10th consecutive month and fourth successive quarter of year over years sales gains in that still-struggling part of the world.
Source : http://www.usatoday.com/story/money/cars/2014/04/25/ford-first-quarter-earnings/8122699/
