Published on March 30th, 2017 | by itadmin
Ford (NYSE:F) Released the Fourth Quarter Results
The famous American car manufacturer Ford (NYSE:F)said on Thursday that the company had successfully secured a net profit of $3.2 billion which is equivalent to around $0.8 per share. Moreover, these higher values are a result of foreign restructuring and some recent product launches which have weighed quiet heavily off the bottom line. Besides, the pre-tax income is about $6.3 billion, whereas the company’s own guidance is about $6 billion.
The fourth quarter incomeis $52 million with earnings per share of only $0.01, however this was led down by some unrest in Venezuela which cost the company about $800 million. However, the pre tax net income was about $1.1 billion, down $197 million in comparison with the 4th quarter of 2013. In order to judge Ford’s (NYSE:F) overall capacity one must have an idea of what Ford (NYSE:F) has been doing in the international market.
However it should be noted that the results mentioned will be on a pre-tax basis.First up, we have North America; the company’s homeland. In fact, the North American region has always remained a major source of income for Ford (NYSE:F) where the company managed to score $1.5 billion net profit in 2014 while the previous year’s score was down by $252 million. The CFO told us about the major reason of the decline. He said that introduction of new pickups brought about a challenging situation for the factories.
It cost them valuable time and money during the transition process. Hence sales were down by 5% while revenues dropped by 6% during this transition period. However, the companymanaged to take the operational growth to 8.4%.The South American region was major setback for the company and Ford (NYSE:F) seems to be blaming it on higher warranty costs and a recall. However, the present situation of the company was a result of slow growth of the Gross Domestic Product in central markets like Argentina and Brazil.
The company lost about $1.16 billion and most of it was the result of troubles in Venezuela where the country’s currency (Bolivars) is facing a serious fall in its value which has greatly impacted Ford’s (NYSE:F) sales.The European region is no good and there have been a lot of problems for the company in the region especially in Russia. Although the company lost about $443 million in the region but this is quiet better than the losses incurred in 2013.
In fact, sales rose by 5% but this effect was neutralized by the falling economy of the Russian region which happens to be a major market for the company (NYSE:F).Beside the Middle Eastern, African and Asia Pacific region were also behind on Ford’s (NYSE:F) expectations where the company incurred millions of dollars worth loss and growth rate was quiet upset. Moreover, this feeble growth can be attributed to lower oil prices. However, all this bad news is not so bad for the company and it appears that Ford will gain its growth soon.