Ford posts $1.6B quarterly profit, predicts wider losses in Europe
January 29, 2013
by Bradford Wernle
DETROIT -- Ford Motor Co. posted fourth-quarter net income of $1.6 billion, carrying the company to its fourth straight full-year profit.
Excluding a large year-earlier extraordinary gain, net in the latest quarter rose 55 percent, powered by strong results in North America. European pretax losses of $732 million dragged down quarterly profits.
Ford said that it will incur higher costs in Europe due to restructuring actions and investments in new vehicles there. It predicted a European loss in 2013 of about $2 billion, vs. an earlier forecast of a loss roughly equal to 2012's, which came in at $1.75 billion.
Overall revenues in the latest quarter rose 5 percent to $36.5 billion. Pretax profits, excluding the year-earlier special gains, rose 52 percent to $1.68 billion.
For the full year, net fell 72 percent to $5.67 billion. But it fell just 5 percent if the extraordinary gain of the fourth quarter of 2011 was excluded. Annual revenues slipped 1 percent to $134.3 billion. Pretax profits fell 9 percent to $7.97 billion.
"The Ford team delivered strong results once again, underscoring that our One Ford plan is working," CEO Alan Mulally said in a statement. "We are well positioned for another strong year in 2013."
Including the extraordinary accounting gain in the year-earlier quarter, net earnings in the fourth quarter tumbled 88 percent.
Ford expects overall profits to be about the same in 2013 as 2012, CFO Bob Shanks told reporters today.
"We expect to see higher profits from North America and expect South America and Asia Pacific to break even," he said. "We're expecting a higher industry in the U.S. and China and a lower industry in Europe" in unit sales.
Full article at link.