4 Problems Facing Ford
Ford (NYSE: F) faces too many challenges to be a buy right now. The carmaker reported third-quarter results this week, including earnings declines, lowered guidance, and less-than-promising sales trends overseas. Most of the turmoil seems to revolve around the company's attempt to restructure and move away from stagnant sedans. Nonetheless, it isn't doing much that will create a bull case for its stock. Here are the four key headwinds holding things back.
Ford announced last year that it would be implementing a massive $11 billion restructuring initiative that would shift the company toward trucks and SUVs. Overall, this year is expected to include $3.5 billion of those restructuring costs, meaning there's still more restructuring expenses down the road. As a result, net income declined 57% year over year to $423 million. On an adjusted basis that excludes special items, Ford had net income of $1.79 billion. Total revenues declined 1.8% to just under $37 billion.
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Source Fool.com
