Ford hit by commodity costs, international woes

By Deepa Seetharaman and Ben Klayman

(Reuters) - Ford Motor Co reported a lower-than-expected fourth-quarter profit on Friday as commodity costs shot up and results from operations outside North America fell short of expectations.

The No. 2 U.S. automaker's losses in Europe nearly quadrupled during the quarter as the economy suffered amid the ongoing debt crisis. Flooding in Thailand led to a loss in Asia, and increased competition blunted profits in South America.

"We saw the external environment deteriorate, and that really affected most regions other than North America," Chief Financial Officer Lewis Booth told reporters, "and then we saw slightly greater than we expected impact of commodities, currency and also the Thai floods."

Shares of Ford, which derives the bulk of its revenue from North America, fell more than 5 percent in premarket trading.

Excluding one-time items, Ford's operating profit fell to $1.1 billion, or 20 cents per share, from nearly $1.3 billion, or 30 cents per share, a year earlier.

On that basis, analysts on average were expecting 25 cents per share, according to Thomson Reuters I/B/E/S.

"It's been a tough go for Ford," said portfolio manager Gary Bradshaw of Hodges Capital Management of Dallas, which owns Ford shares. "It seems like the company continues to execute, but there are plenty of headwinds."

Besides higher commodity costs, Ford also said it missed expectations because of unfavorable exchange rates.