The second-largest US automaker managed to post better than expected profits from the sales results last year, though the situation continues to worsen in Europe, where the company continues to bleed money.
Ford Motor revealed its full-year financial results for 2014 recently and concluded that it would need to keep up the positive results in North America to lift profit in 2015, with losses in Europe for the year now higher than previously foreseen. The company forecasted it would incur losses of around $250 million in 2015 in Europe, but the latest outlook is negative – the firm backed away from the prediction and said the loss would be smaller than $1 billion (incurred in 2014), refraining to give a certain figure, though. “We’re seeing a much bigger impact from Russia,” commented Chief Financial Officer Bob Shanks.
Last year’s net income was only $52 million, or 1 cent per share, dropping from $3.07 billion a year earlier, though in 2013 the results were buoyed by a one-time $2.1 billion special tax item. Last year, during the fourth quarter, the automaker also took a one-time charge of $800 million for an accounting change in Venezuela. Without special items, overall earnings were 26 cents per share, while the revenue of $35.9 billion easily topped analyst expectations of $34.54 billion. North American pretax profit was of $6.9 billion in 2014, yielding an annual bonus of around $6,900 per person for the 50,000 union-represented workers. Last year, the region’s profit margin was 8.4 percent and Shanks added the F-150 pickup rollout was going “extremely well” – with the model being the major earnings booster for the brand in its home market.