Ford shares shifted down today after the automaker predicted a bumpy road ahead. The company said the cost of launching a record number of new vehicles will reduce profits next year, which could fall by as much at $1.5 billion. The forecast caught investors off guard sending shares 6% lower to $15.65, its worst one day drop in two year.
General Electric says it expects double digit profit growth in its industrial unit next year. The company has been shedding units that don’t fit its new focus on manufacturing. It now expects profits in aviation, healthcare and other areas of business to rise at lease 10% next year. GE said it also plans to continue aggressive investments in manufacturing in 2014. Shares rose more than 1% to $27.41.
Some key management changes at Boeing today. The company promoted the head of defense to the post of Chief Operating Officer and named two other executives Vice Chairman. The moves might be part of Boeing’s CEO succession plan since Chief Executive, Jim McNerney retires next year. The stock fell slightly to $135.49.
FedEx reported an earnings miss and blamed it on a drop in revenue in its biggest unit, express delivery. Despite the weaker than expected numbers, the company forecasts a strong holiday season and outlook for 2014. Shares were up a fraction to $139.72.
General Mills reported a second quarter profit that lagged estimates. The packaged-food company saw sales slide in part because this year’s late Thanksgiving meant the quarter ended before the holiday. Increased commodity costs and unfavorable currency changes didn’t help the Cheerios cereal maker either. Shares, however, were up slightly to $49.73.
Harland Clarke, a bank check printer, said it would buy the public company, Valassis Communications for $1.8 billion. Valassis prints marketing products like newspaper inserts and coupons. Harland said the deal would create a company with more than $3 billion in combined revenue. That sent shares of Valassis soaring up 22% o $34.60.
Shares of AMC Entertainment rose in their first day of trading. The theater operator raised more than $330 million in its debut. The CEO said the company’s success is in its business model. The stock ended the day at $18.90 up 5%.