Ford Reports 54% Jump in Q4 Profits, Outlook on Fiscal 2013 Lackluster (F)

FORDAlthough Ford Motor Company (NYSE: F) reported better than expected fiscal fourth-quarter results on Tuesday thanks to robust demand in North America, shares slipped in early trading after the U.S’s second largest automobile maker provided a disappointing outlook on fiscal 2013 due to weakness in Europe.

The results also showed that losses from the European operations were wider than expected.

For the fiscal fourth quarter, Ford reported net earnings (excluding onetime items) of 31 cents a share, up from 20 cents a share, in the year earlier quarter.

Revenue during the period rose to $34.5 billion, from $32.60 billion, in the year earlier quarter thanks to robust sales in North America region. Lower interest rates, need to replace old cars, easy availability of loans, all boosted the demand.

Analysts’ consensus estimate was for earnings of 25 cents a share on revenue of $32.94 billion, according to data compiled by Thomson Reuters.

The automaker said that it foresees 2013 earnings to match 2012 levels.

For the full year, Ford reported earnings of $5.66 billion, a 5 percent fall from $5.97 billion in fiscal 2011, (not including the tax-valuation changes that had boosted the 2011 earnings to $20.2 billion).

In Europe, Ford suffered a loss of more than $1.75 billion in 2012, which was in line with Company’s own initial forecast of loss of more than $1.5 billion. The Company now expects wider losses from its European operations during fiscal 2013. While earlier the Company was expecting losses from stemming from Europe could be in the same level of 2012, it now expects loss of $2 billon.

However, Ford’s CFO, Bob Shanks said that Company’s losses in the region will bottom out this fiscal, adding that macroeconomic environment was still wobbly and the company would take desired actions, if required.

Meanwhile, the automaker also envisages expanding its traction both in China and the North American market.



Ed Liston is a senior contributing editor at An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.