Ford Motor Company (NYSE:F) Everything According To The Plan

Benjamin Roussey - January 29, 2014

Boston, MA 01/29/2014 (wallstreetpr) – The quarterly and full year results from Ford Motor Company (NYSE:F) were as per expectations. In fact, it appeared that the company had scripted these almost three months back. What remains to be seen is the way forward. Will Ford finally break out of the shackles of the 2008 financial crises?

The Earnings Preview:

Europe and Latin America underperformed as expected but strong North American and Chinese performance lifted the company, again this was expected. Revenues of $37.6 billion beat analysts’ expectations by $2.2 billion. Earnings of $8.6 billion for the full fiscal 2013, hit a new record translating into $1.62 per share. The strong earnings were good news for the pension fund as well, it is now $9 billion underfunded against $10 billion last year. This year’s contribution will decrease from $3.5 billion to $1.5 billion. The company also has a net cash balance of $9.1 billion. This shows the continuous improvement in Ford’s balance sheet.

Geographic Spread:

If we talk of the geographic spread in the fourth quarter, North America saw a revenue rise of 2% to 22.5 billion with volumes touching 760,000. The margins were affected on account of lower pricing, investment in new products as well as one-time warranty expenses. Ford Motor Company (NYSE:F) expects that volumes will touch 16 million units this year.

South America is going through a difficult time as the economics have hit a rough patch. Sales were down in the crucial markets of Brazil, Venezuela and Argentina. Volumes were hit by almost 6% to record 135,000 units; the difficult economic conditions also saw more sales of lower-priced models. Revenues slid by 13% to $2.7 billion. Earnings also took a hit to record loss of $126 pre tax loss.

Ford Motor Company (NYSE:F) was able to cut its losses to $571 million on higher revenues of $7.1 billion. The 10% increase in revenues was reported in spite of lower volumes of 318,000 units. It appears that Ford’s strategy in Europe is now finally paying off.

Asia continued to deliver bumper results with volumes increasing by 29% to 397,000 units and revenues by 18%. The company recorded earnings of $106 million from this region.

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Benjamin Roussey

Benjamin Roussey is from Sacramento, California. He has two master’s degrees and served four years in the U.S. Navy. His bachelor’s degree is from CSUS (1999) where he was on a baseball pitching scholarship. His second master’s degree is an MBA in Global Management from the University of Phoenix (2006). He has worked for small businesses, public agencies, and large corporations. He has lived in Korea and Saudi Arabia where he was an ESL instructor. Benjamin spends his time in between Northern California and Cabo San Lucas, Mexico, committing himself to his craft of freelance and website writing. http://www.facebook.com/ben.rouss

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