Ford Beat by Three Cents per Share

We had more good earnings news today. Ford ($F) reported fourth-quarter earnings of 31 cents per share which was three cents better than estimates. In terms of net income, that’s a cool $3.04 billion. As usual, the company is doing well in North America. The F-Series trucks are very popular. For the 32nd year in a row, they were the top-selling vehicle in the U.S.

The weak spot continues to be Europe. True, the economy there is a bit of a wreck, but Ford needs to be stronger in that market. For the year, Ford lost $1.61 billion in Europe. They expect more losses this year, but a profit by 2015. Things are improving. Ford lost $571 million in Europe last quarter which is bad, but it’s better than the $732 million they lost in Q4 2012. Also, Ford had a small loss from Latin America and a small profit from Asia, but those are still pretty minor parts of their overall business.

Ford reiterated that profits will fall a bit this year ($8 billion to $7 billion pre-tax), but that’s because the company has very ambitious plans to roll out new models. Ford is introducing 23 new vehicles of which 16 are in North America. Overall, these were good results from Ford.

Posted by on January 28th, 2014 at 10:52 am


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