Ford Motor Co. (NYSE: F)
Ford Motor posted mixed fiscal fourth-quarter financial results, with net income slumping and falling below the estimates of Wall Street analysts despite a rise in revenue. Excluding taxes and other charges, the Dearborn, MI-based company made $3.68 billion in 2018, meaning US unionized workers are expected to receive profit-sharing checks of $7,600 in March. In the same period a year ago, the company had a pretax profit of $7.7 billion.
The automaker blamed challenges in China and Europe for the decline in pretax profit from 2017. Shares of the company closed the regular session on Wednesday at $8.34 per share, after a decline of 1.88%. The stock has been under pressure all year, losing nearly 29% in the past twelve months.
F Earnings & Outlook
Ford lost $100,000, or $0.03 per share, in the fourth quarter, compared with a loss of $2.6 billion, or $0.66 per share, in the prior-year period. The automaker announced adjusted earnings of 30 cents per share for the three months to December 31, 2018, compared with a loss of $0.09 per share in the same the three months a year ago. Analysts were expecting adjusted earnings of 31 cents per share, according to figures compiled by FactSet
Total revenue came to $41.8 billion, up 1% from the $41.3 billion the company reported during the same quarter last year. Ford attributed the revenue jump to a higher net pricing and improved mix. Analysts surveyed by FactSet expected the automaker to post revenues of 38.6 billion.
Looking ahead, the company sees the potential for year over year improvement in its key financial metrics, according to Chief Financial Officer Bob Shanks. The CFO said Ford expects to be able to fully finance its capital plans and business needs this year, while maintaining liquidity and cash levels at or ahead of its target levels.
Ford Motor Company Comments
“While 2018 was a challenging year, we put in place key building blocks to build a more resilient and competitive business model that can thrive no matter the economic environment,” said Bob Shanks. “We are confident in our plan to transform our business.”
“We have consistently laid the foundation for the global redesign of our business, clearly investing to sharpen our competitiveness so we can better serve customers and invest for the future,” said Jim Hackett, Ford president and Chief Executive Officer. “Ford enters 2019 with a clear vision, a solid plan, and we are now in execution mode.”
Ford Motor Co. engages in the manufacture, distribution, and sale of automobiles. It operates through the following segments: Automotive and Financial Services. The Automotive segment engages in designing, manufacturing, marketing and servicing of Ford cars, trucks, SUVs, and electrified vehicles, as well as Lincoln luxury vehicles.
The Financial Services segment consists of Ford Credit, which offers automotive financing products to and through automotive dealers. The company was founded by Henry Ford on June 16, 1903 and is headquartered in Dearborn, MI. – CNN Money