Jun 15, 2011
The second biggest U.S. automaker Ford Motor Co. (NYSE:F) plans to see profits slow down after their 13-year high reported from the first quarter. The company expects second-quarter earnings to be right around first-quarter levels, but they expect to see the second half of the year to be slightly weaker.
Bob Shanks, vice president and controller said at an investors' conference on Wednesday that they "continue to expect our structural costs this year to increase...we also continue to expect that commodity costs will increase by about $2 billion." The company reported a first-quarter profit of 61 cents per share, totaling $2.55 billion, and way above any analysts' predictions.
Shanks understands that the global economy may be losing momentum and what that means for Ford. "Clearly there is a lot of nervousness out there. We're prepared for what's coming at us one way or the other. I think we're in a relatively good place from what could happen to us from an economic standpoint," he said.
Ford has a potential upside of 50% based on a current price of $13.28 and an average consensus analyst price target of $19.91.
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