Ford has announced a pre-tax profit of $8.6 billion for 2013, an increase of $603 million from the 2012 result. It is Ford’s highest full year automotive pre-tax profit in more than a decade, thanks to record gains in North America and Asia Pacific Africa (especially China). According to the Blue Oval, results in South America are “about breakeven”, while in Europe losses were lower than in 2012.
Full year net income was $7.2 billion including pre-tax special item charges of $1.6 billion and favorable tax special items of $2.2 billion. Including the 2013 net profit, Ford said it has earned more than $42 billion in global profits during the past five years, more than wiping out the $30.1 billion it lost during the height of the auto crisis. However, the company said it might have reached a “financial apex in the current auto cycle.”
That’s because of a record number of new-vehicle launches this year, increased competition, continued brick-and-mortar expenses and unpredictable economic conditions in South America. Ford wants to launch 23 new cars and trucks in 2014, more than doubling the number of new vehicles in 2013.
For 2014, Ford expects a slight decrease with pre-tax profit to range from $7 billion to $8 billion and automotive revenue to be about the same as in 2013. The company also forecasts a lower automotive operating margin and “substantially lower” automotive operating-related cash flow.
“This is a preparation year, as we consolidate the gains of the past and prepare for even stronger growth in the future,” Bob Shanks, Ford’s chief financial officer, said on Tuesday.
By Dan Mihalascu
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