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Ford Motor Co. Big Gain in Profits for U.S. and China
On Tuesday the Ford Motor Co. has said that they continued with strong business operations in North America and China- this stellar performance has given the company a big gain in the forth-quarter.
The profit for three months that ended on December 31, jumped 90 % to $3 billion from $1.6 billion the same time last year, representing its 18th consecutive quarterly profit according to Ford. The quarterly revenue rose to almost 4% to $37.6 billion from $36.3 billion.
Alan Mulally, Ford’s chief executive, notes that the motor company had a stellar year. Moving forward, “Ford plans to continue to drive solid results and profitable growth for all.” Ford feels that they are very well positioned for top of the line performance.
Ford reported it’s highest operating profit in more than ten years, including a record in annual profits in North America and the Asia Pacific Africa region. South America broke even and Europe continued to decline from the previous year.
Ford’s CFO, Robert Shanks, commented, “It was one of the best full-year results in our history.” The results generated record profit-sharing payments averaging about $8,800 to 47,000 union members in March.
Mulally said Ford’s operating profit for this year would decline to a range of $7 billion to $8 billion from $8.8 billion in 2013. Higher capital spending, the cost of launching new models- especially its redesigned F- 150 pick-up truck-and a more competitive pricing environment in the U.S. all will contribute to a lower net income.
Brian Johnson, an analyst at Barclays said, “We give Ford credit for pushing the envelope with an innovative product that some would describe as potentially game-changing. However, with the new product comes a good amount of risk.”
Jack Nerad, a market analyst at Kelley Blue Book said “Ford has been on a lengthy roll, and its high-volume vehicles remain strong in the market. Fans of the auto-maker, will be glad to see the comeback. For employment in Ford, click here.
Image Credit: scholarshipstimes.comFord Motor Co. Big Gain in Profits for U.S. and China by Jaan