Ford is suffering from lower sales and strong U.S. currency. The data for first quarter is showing a depressing picture for the automobile major in the United States. Net income dipped around 6.5 percent ($924 million) for the first quarter. The company officials are saying that they hope for the better situation in terms of sales in the upcoming quarters. The Michigan-based corporation projects profit of $8.5 to $9.5 billion this year. The net profit was $6.3 billion last year.
Chief Financial officer Bob Shanks from the Ford said that this year is going to be a breakthrough for the company and we are on track to achieve the same. The earnings per share for the first quarter were 23 cents. Last year, during the same quarter the value of the same was 25 cents. The analysts on the Wall Street were expecting for higher figures. The experts survey by FactSet project earnings per share to 26 cents. The higher tax rate calculated by the company has resulted in this wrong forecast. The analyst did their calculations as per 29 percent tax rate for the quarter, but tax rate at Ford was around 34 percent.
This lowered earnings per share by 2 cents. Even in terms of the revenue, the company underperformed. Sharp 5 percent decline in the revenue was observed. The forecast projected the revenue to $34.3 billion, but the company earned around $33.9 billion, $2 billion less than last year. Though sales increased in the Asian markets, it declined in North America.