Jun 21, 2005

Ford Cuts Guidance

From Marketwatch:

Ford Motor late Tuesday slashed its full-year profit target and said it would terminate about 1,750 of its North American salaried workforce to cut costs in the face of slumping sales.

Ford's stock (F: news, chart, profile) added 6 cents to close at $11.17 before slipping 5% to $10.60 in extended trading.

The No. 2 U.S. automaker now expects to report a full-year profit in a range of $1 to $1.25 a share, down from prior estimates of $1.25 to $1.50 a share.

Strange they didn't mention this before they sold debt. I wonder if "but a lot can change in two weeks" is a valid courtroom defense?

GM's bonds have already been trading a bit heavy the last week so I think the auto debt market could make it back to the headlines tomorrow.

*Update 6 AM 6/22 - According to the FT, "General Motors has stepped up the pressure on Ford in recent weeks with an “Employee Discount for Everyone” incentive programme. JD Power Associates estimated last week that GM’s discounts boosted its market share by eight percentage points in the first 12 days of June, while pushing down Ford’s share by more than a point.

Ford has responded by offering cash rewards of up to $1,000 to employees and pensioners who line up buyers of Ford vehicles."

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