Mixed Q4 results for Ford

Worldwide
Published:  24 January, 2019

Revenue for the U.S. headquartered automotive manufacturer increased in the fourth quarter and in full 2018, compared with the prior year in both periods, while net income and Company adjusted EBIT were both lower.

Ford’s fourth-quarter revenue rose +1%, attributed to “improved mix and higher net pricing”. Company adjusted EBIT was US$1.5 billion, driven by North America, which posted fourth-quarter EBIT of US$2 billion and an EBIT margin of 7.6%. However, auto operations outside of North America are reported to have generated an EBIT loss of US$828 million in the quarter, down US$692 million, mainly due to China and Europe. Ford posted a fourth-quarter net loss of US$116 million, or 3 cents a share, down from a net profit of US$2.5 billion, or 63 cents a share, in the same quarter of 2017.

In the full year, net income was US$3.7 billion and Company adjusted EBIT was US$7 billion, driven by North America, with an EBIT margin of 7.9%. “While auto operations reported a lower EBIT than a year ago, driven by China and Europe, all regions continued to focus on improving operational fitness while building on core company strengths”, said Ford. The carmaker ended 2018 with US$23.1 billion in cash.

In Europe, Ford says it posted record SUV sales, with the Ranger as the region’s best-selling pick up, and Ford once again was the best-selling commercial vehicle brand. The Asia Pacific region, India and Thailand achieved record full-year sales, while Lincoln is reported to have set a new annual sales record for the fourth consecutive year in China.

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As reported by ILM, Ford is said to be reviewing each of its European business in a bid to become more efficient in one of the world’s most competitive markets. The U.S. carmaker employs about 53,000 people in Europe across 15 plants, and plans to cut jobs in the region as part of its US$14 billion global cost-saving plan.