Ford Motor Q4 profit falls to $1bn
New York, January 28, 2012
Ford Motor Company has reported a lower-than-expected fourth-quarter profit as commodity costs shot up and results from operations outside North America fell short of expectations.
The No. 2 US carmaker's losses in Europe nearly quadrupled during the quarter as the economy suffered amid the ongoing debt crisis. Flooding in Thailand led to a loss in Asia, and increased competition blunted profits in South America.
Excluding one-time items, Ford's operating profit fell to $1.1 billion from nearly $1.3bn a year earlier.
For the fourth quarter, Ford reported net income of $13.6 billion, buoyed by a one-time tax-related gain of $12.4 billion. Net income was $190 million a year earlier.
Profit margins in Ford's automotive business fell to 5.4 per cent in 2011 from 6.1pc in 2010. Commodity costs for the year came to $2.3 billion, up slightly from the company's $2.2 billion forecast.
Ford's losses in Europe widened to $190 million in the fourth quarter from $51 million a year earlier. In South America, the company's pre-tax operating profit fell to $108 million from $281 million.
Ford posted a quarterly loss of $83 million in Asia, compared with a year-earlier profit of $23 million.-Reuters