DEARBORN, Mich. — Ford Motor Co. is the most profitable it’s been in a decade, since the days when Americans were snapping up SUVs. But maintaining that momentum — and meeting the high expectations of buyers, workers and investors — will be a big challenge in the coming year.
Ford got a taste of that Friday. Despite reporting a profit for 2010, the company’s stock fell more than 13 percent to close at $16.27. Investors were disappointed that the results fell short of expectations.
Ford also posted an 80 percent drop in fourth-quarter net income, missing forecasts and ending two years of better-than-expected results.
It was clear Ford won’t have much room for error as it tackles nagging problems, from the huge loans it took out to fund its turnaround to its upcoming labor talks to its stodgy, slow-selling Lincoln brand.
“When a company consistently beats expectations, analysts and investors start pushing. They raise the bar to the extent that eventually they’re going to miss it,” Standard and Poor’s analyst Efraim Levy said.
Ford earned $6.6 billion, or $1.66 per share, last year, more than double the $2.7 billion, or 86 cents per share, it made in 2009.
That was the most it’s made since 1999, when it earned $7.2 billion, but excluding charges from debt reduction and other items, Ford earned $1.91 per share last year, below the $2.05 analysts expected.
Ford said it should have kept analysts better informed about potential problems in the fourth quarter, including a loss in Europe and a $1 billion increase in costs in North America.
