The Dearborn automaker on Thursday reported a full-year North American pre-tax profit of $9.3 billion. That helped Ford turn around results in Europe – it posted its first full-year profit there since 2011.
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Detroit’s Big Three manufacturers have benefited from cheaper gasoline prices-in addition to low interest rates-that have accelerated a consumer shift to trucks and SUVs, which generate higher profits than passenger cars.
Analysts polled by Thomson Reuters expect Ford (NYSE:F) to report in the three months ending in December unadjusted earnings per share of 49 cents on $1.94 billion in profit, up from 1 cent per share on $52 million in profit in the same period the previous year. Ford’s US sales rose 5.3 percent for all of past year, while its market share fell to 14.9 percent from 15 percent, according to Autodata Corp.
In the fourth quarter, the automaker booked pre-tax profits of $1.9 billion, compared to a loss of $4 billion in the fourth quarter of 2014.
“We’re doing everything to ride it out so when it turns around we’re able to reap the rewards”, Shanks said as he expressed hope that they will recover in the region. After all, this was the same stage where the automaker had wowed audiences past year with the sexy 2017 Ford GT, the rear-engine two-seat supercar that’s heading to Le Mans in June.
Ford launched 16 vehicles worldwide last year, down from 24 the year before. Pre-tax profit for 2015 increased nearly 50% to $10.8 billion, while revenue rose 4% to $150 billion, the highest level in 12 years.
“We promised a breakthrough year in 2015, and we delivered”, said CEO Mark Fields. The brand’s SUV sales were up 21 percent past year. Asia Pacific, which includes China-the world’s largest auto market -delivered a $444 million operating profit, up from $95 million in the prior fourth quarter.
Whiston said a return to robust earnings in Europe should help restore investor confidence in Ford, but added that “the odds of that stock hitting $20 in 2016 are not good”. Ford’s 2015 sales in China grew 3 percent to 1.1 million vehicles.
Fields told the analysts that it may take another recession to prove to investors that Ford is a healthier company that it once was. ‘That is the real opportunity for Ford going forward’. Economic conditions in South America continue to be very challenging, particularly in the key markets of Brazil and Argentina.
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Ford reported 2015 U.S. auto sales of 2.5 million vehicles, up five per cent from 2014.
