Ford was reported to have made the highest profit in 2010 which is more than any profit made by the company in a decade and more. The profit was a result of the company’s strong sales of vehicles and the reduction in the costs. However the performance of the company in the fourth quarter baffled the investors and the stock prices of the company also went lower this Friday. The prices of the shares of the company fell much beyond the expectations of the analysts as it went down to 16.63 dollars thus reporting a fall of 12 percent. This reaction displays the difficulties faced by the company even after Ford did remake itself in the previous four years. The net income of the company was at 6.6 billion dollars which is more than twice of the income in 2009 which stood at 2.7 billion dollars.

If the company did not discontinue the Mercury brand and make for charges for the debt reduction then it would have lived up to the expectations of the analysts and earned 1.91 dollar per share. The profit made by Ford also did not match with the forecasts made by Wall Street as the net income of the company declined by 79 percent and reached 190million dollars which implies 5 cents for each share. The reports were resultant of the big charges made for debt reduction. If the company did not make the cuts for the lowering of debt then it would have still been close to the forecast made by the analysts, and would have made 30 cents for each share. Ford declared that the investors had been warned of the onetime charges. However the company did not update the investors about its decision of reducing the incentive spending made in Europe which played a major role in the drop of sales of the company. The company also revealed that it made high expenditure in marketing its latest products such as Ford Explorer.