Monday, 2 February 2015

Ford profits dip from a year ago

Ford Motor Company has declared a full-year 2014 pre-tax profit of $6.3 billion, a decline of $2.3 billion compared with a year ago.

Full year net income amounted to $3.2 billion.

Automotive pre-tax profit came out at $4.5 billion. Of the company’s major markets, North America proved profitable while Asia Pacific posted a record profit; Europe and Middle East & Africa both improved while South America reported a loss

Wholesale volume came out about equal to a year ago although company revenue fell 2 per cent. Ford achieved a record market share in Asia Pacific, driven by record share in China

Last year turned out to be the best year for Ford Credit since 2011

The company has a record-setting year in terms of number of vehicles launched globally (24), including the all-new F-150, Mustang, Escort, Ka, Transit and Lincoln MKC.

The company’s fourth quarter pre-tax profit was $1.1 billion, equivalent to a decrease of $197 million compared with a year ago. Notwithstanding this Ford reported its 22nd consecutive profitable quarter

Fourth quarter net income of $52 million was a decrease of $3 billion compared with a year ago. However, it does include a non-repeatable favourable special tax item of $2.1 billion from a year ago; as well as pre-tax special item charges of $1.2 billion reflecting primarily a one-time accounting change for Ford’s Venezuela operations, and separation-related actions in Europe and Asia Pacific to support the company’s transformation plans, and the settlement of the company’s 2016 Convertible Notes.

Fourth quarter wholesale volume and company revenue declined year-over-year by 2 per cent and 5 per cent, respectively; however there was a positive automotive operating-related cash flow of $500 million. Automotive gross cash of $21.7 billion at end of fourth quarter exceeded debt by $7.9 billion

Ford officials note that the 2015 outlook for the company in terms of pre-tax profit is unchanged and is expected to range from $8.5 billion to $9.5 billion. And there could be higher automotive revenue and operating margin compared with 2014; as well as improved outlook for automotive operating-related cash flow from positive to higher than 2014

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