Ford Motor Company (NYSE:F) reported a meager quarterly earnings of a penny per share at $52 million, a sharp slip of almost $3 billion over the previous year, The result highlights the carmaker’s higher costs for the year on account of special charges for restructuring operations in Europe, as well as expenses associated with the global launch of new models. Pre-tax charges of $1.2 billion was charged against the quarter, as well as $800 million charge for currency headwinds in Venezuela. Pre-tax earnings beat analysts estimates of 22 cents to 23 cents at 26 cents per share.
Four months earlier, Ford Motor Company (NYSE:F) announced it expected to bear a loss of $250 million in the European region by 2015, having suffered a loss despite selling more vehicles and reporting revenue of 2.2 billion last year. The fourth quarter resulted to a loss of $121 million in its Russian operations. Taking into account results for the fourth quarter, Ford lowered expectations in Europe although noting that such a loss will be lower than the $1 billion incurred last year.
For the full fiscal year, Ford Motor Company (NYSE:F) reported an earnings of $3.19 billion, down from the $7.18 billion of net income reported for the previous year. Revenue also fell 2 percent on a global scale, as against figures reported in 2013. According to chief executive Mark Fields, 2014 was “solid yet challenging”, and he committed to substantially rev up pre-tax gains for 2015.
Profits for 2015 will be adversely affected by the scheduled release of the new Explorer and Edge SUV’s slated in the later part of the year. First quarter profits, on the other hand is also expected to be weighed down by the impact of F-150 changeover, as well as a downtime at Ford Motor Company (NYSE:F)’s plant in Kansas City.
This article has been written by Nonito Guntan.