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    Automobile

Ford Motor Company (NYSE:F): What’s In Store For This Auto Company

by Patrice Washington |
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Thursday, Apr 10, 2014
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Boston, MA, 04/10/2014  (usastockreport) – The beginning of the year for Ford Motor Company (NYSE:F) seemed dull as the sales were low but will this continue for the remaining part of the year, as well? That is yet to be determined. The sales are expected to go up as the year marches ahead but that’s just a speculation. It is yet to be seen what actually happens.

Sales Might Rise

The auto company Ford Motor Company (NYSE:F) showed some somber sales numbers in January and February though the number is expected to rise as the weather improves. Well, that is what the company is hoping. But will this optimistic thought be proved correct? It is being said that the heavy and gloomy winter chill has been keeping the customers away from car dealerships. Well, in reality the sales of Ford Motor do seem to have risen a bit in March and weren’t as low as compared to the sales in January and February.

But the sales still are lower than what the company had actually expected for this year. The seasonally adjusted annualized rate, which indicates the number of cars that would be sold in a particular year if the current pace of sales continues, is up by only a little percentage from last year. The sales in March this year were up only by 1.7% as compared to the March of last year.

Charges worth $350 Million

The sales for Ford Motors have seemed pretty promising for the first quarter of this year. When the sales of this quarter conclude with the end of the month of April huge profits might pour out for the company from the North American region while losses might be limited to Europe. But the real problem for Ford Motors remains to be a $350 million charge related to problems regarding the devaluation of the currency of Venezuela.

The Chief Financial Officer of Ford, Bob Shanks had warned Ford Motor Company (NYSE:F) in the last quarter of the previous year itself saying that the volatility in Venezuela could hurt the figures in the first quarter of this year. Well, now it is crystal clear that the CFO of the company was right about that one. There has been a big devaluation in the Venezuelan currency and its now official.


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