Ford Inside News banner

1 - 8 of 8 Posts

·
Registered
Joined
·
1,057 Posts
Discussion Starter · #1 ·
Strong growth' predicted for '15 despite darker outlook for Europe

Nick Bunkley
Automotive News January 29, 2015 - 7:00 am ET -- UPDATED: 1/29/15 7:47 am ET - adds details

DETROIT -- Ford Motor Co. posted a decline in fourth-quarter profit and said earnings fell 56 percent in 2014 as it introduced 24 vehicles worldwide while U.S. market share declined.

Annual net income fell to $3.2 billion from $7.2 billion in 2013. Ford earned $52 million in the fourth quarter, marking its 22nd consecutive profitable quarter, but that was down from $3 billion in the same period a year earlier, when results were boosted by favorable tax benefits.

“2014 was a solid yet challenging year for Ford -- with our investments and a record number of new products launched around the world positioning us for strong growth this year and beyond,” CEO Mark Fields said in a statement. “The entire Ford team remains focused on our three priorities of accelerating our One Ford plan, delivering product excellence and driving innovation in every part of the business.”

Annual revenue was down 2 percent, to $144.1 billion, as Ford booked fewer trucks and other vehicles coming off the assembly line.

The fourth-quarter results included a previously disclosed $800 million pretax charge related to currency devaluation in Venezuela. Excluding that and other special items, including costs related to job cuts in Europe and Asia Pacific, Ford earned a quarterly operating profit of $1.1 billion, 15 percent less than a year ago.

In North America, Ford earned $6.9 billion last year, 22 percent less than it did in 2013. As a result, about 50,000 hourly UAW members at Ford will receive profit-sharing checks averaging $6,900.

Last year’s profit-sharing checks averaged $8,800, a record. The payouts, to be made in March, will total about $345 million.

2015 outlook

As production and sales of the vehicles introduced in 2014 ramp up, Ford said it expects to earn a 2015 pretax profit of $8.5 billion to $9.5 billion, which matches the guidance it provided in September.

Ford CFO Bob Shanks said the company’s 2015 operating margin would improve from last year’s 3.9 percent.

“I think we’ll do much better than that in 2015,” Shanks told reporters at Ford headquarters this morning. “We do expect to see a substantial increase in our wholesales this year. You’re going to see a pretty big step up … and our share improve as well. You’re going to see a lot of strong growth numbers from Ford in 2015.”

F-150 'flying off lots'

Ford has said dealers will have a full supply of the redesigned F-150 around April. Ford started shipping F-150s from its Dearborn Truck Plant in November, and its truck plant in Kansas City, Mo., which was down for a month to retool, reopened this week.

Shanks said the F-150 launch is going “extremely well,” with the Dearborn plant now up to full speed.

“Vehicles are literally flying off the lots,” he said. “Mix is extremely rich. Pricing is very, very healthy.”

continued: http://www.autonews.com/article/201...profit-fell-56-percent-amid-new-product-blitz
 

·
Premium Member
Joined
·
7,893 Posts
All along Ford stated that 2014 would have to pay for the launch 24 vehicles worldwide, along new manufacturing plants and hundreds of new dealerships. Which creates a broad foundation for sales growth in 2015 and many years to come. I expect Ford to be over $10 Billion for 2015.
 

·
Registered
Joined
·
1,057 Posts
Discussion Starter · #4 ·
It wasn't a bad year when you factor in the product launches and recalls they had last year. I wonder if it would be cheaper for them to walk away from the Venzuelan market until the country gets it's act together.
 

·
Registered
Joined
·
5,933 Posts
It wasn't a bad year when you factor in the product launches and recalls they had last year. I wonder if it would be cheaper for them to walk away from the Venzuelan market until the country gets it's act together.
Falcon Lover won't like that! haha
 

·
Registered
Joined
·
1,057 Posts
Discussion Starter · #6 ·
It's true, Ford is losing money there simply because of the Venzuelan currency valuation, the samething as in Russia.
 

·
Registered
Joined
·
500 Posts
"Fuzzy Math" but I think the F150 change-over was a drag of about 1 Billion alone, a good portion of that was in the 4th quarter.

IMHO there was a good buying opportunity in "F" this morning............ :angel
 
1 - 8 of 8 Posts
Top