Top Nav

Ford Stock Plummets on Europe Losses

Just as the auto industry was picking up steam, America’s second-largest carmaker flopped in Europe.

Ford (NYSE: F) stock is down 5.7% in early trading today on news that the company reported a 21% drop in its European revenue. Though the automaker’s North American sales are much improved, Europe is one of Ford’s key markets. The Fiesta and Ford Focus are big sellers across the pond. Sales of those vehicles dipped to a 17-year low, according to the Financial Times.

Slower sales in Europe aren’t unique to Ford. With half the continent buried under a mountain of sovereign debt, consumers are tightening their belts all across Europe. Spending is down on a lot of luxury products – not just cars.

Things aren’t supposed to get much better this year. Ford is predicting a $2 billion pre-tax loss in its Europe business in 2013 – even worse than the $1.75 billion loss it suffered last year.

While Ford’s European sales picture is gloomy, its North American sales continue to brighten in the years after the auto bailout. North American sales were up 35% in 2012.

Overall, Ford suffered a $5.66 billion loss last year. But that was an improvement from the $20 billion hit the company took in 2011.

Business is steadily improving at Ford. But Europe remains a major problem area. That could keep Ford stock in check for the foreseeable future.

Strike Price Offer

The Strike Price is your leading resource for insight into the world of options trading. Chief options analyst Andy Crowder will guide you through the best options strategies—telling you exactly where he's putting his money, and how you can make safe, reliable gains from some simple options trades. Your FREE subscription also includes Andy’s report "The One Vital Rule for Every Options Trade"—which reveals the #1 rule to achieve a high win-rate in every options trade.
You've successfully subscribed, click the link in your email to confirm your subscription.
There was an error, and you have not been subscribed, please try again.