Ford Motor first quarter profit plummets, misses expectations

Profits at the Former Motor company plummeted in the first quarter of 2014 compared to the same time period last year.

Ford announced today that it earned $989 million in the quarter, or 24 cents per share, reports the New York Times. Not only was this short of Wall Street estimates, but it was also a 39 percent fall from the same quarter in 2013. A year ago, Ford earned $1.61 billion in the first quarter.

The automaker blamed higher costs at the North American division and having to pay $122 million for job reductions in Europe.

“The higher costs are more than explained by $500 million related to warranty reserve increases for field service actions and weather-related costs,” Ford said of the higher costs in North America.

Still, USA Today notes that Ford sales were up to $35.9 billion from $33.86 billion. Ford also said last month that sales in Europe were up 12 percent that month and up 11 percent in the first quarter.

Ford CEO Alan R. Mulally still believes that the company is on track for a good 2014 as it will introduce 23 new products internationally. The company has also done better in recent years than its rivals like GM and Toyota, as it has avoided major public scandals.

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