Ford earnings rise, beat expectations

Ford earnings rise, beat expectations

 

New York (AFP)

 

US auto giant Ford Motor Tuesday reported quarterly earnings that bested expectations as higher sales in North America and a smaller loss in Europe offset declines in South America.

 

Ford, the second-biggest US automaker, notched a 90 percent rise in fourth-quarter earnings thanks largely to a number of tax gains.

 

Revenues rose 3.6 percent compared with the year-ago period.

 

"We had an outstanding year in 2013, demonstrating that our One Ford plan continues to drive solid results and profitable growth for all," Ford chief executive Alan Mulally said in a statement.

 

Ford's North America division, which accounts for nearly one-third of company sales, reported higher quarterly sales but nine percent lower profits due to lower prices and $300 million in expenses associated with a recall of its Escape sport utility vehicle.

 

Ford enjoyed higher sales and wholesale deliveries in its Asia Pacific Africa segment, where pre-tax profit hit a record $106 million, about three times more than in the year-ago period.

 

In Europe, Ford trimmed its quarterly loss to $571 million from $732 million in the year-ago period, while Ford's South America division posted a loss of $126 million.

 

The South America results were hit by lower production in Venezuela due to a limited availability of US dollars, the company said.

 

Overall fourth-quarter profit came in at $3.0 billion on revenue of $37.6 billion compared with year-ago profit of $1.6 billion on revenue of $37.6 billion.

 

The results included $2.1 billion in favorable tax items, such as valuation allowances held against US tax-deferred assets.

 

The results translated into earnings of 31 cents per share, topping analyst expectations of 28 cents.

 

The company rated 2013 "one of Ford's best years ever" as Ford and other US automakers benefited from a surge in auto sales.

 

Net income for the year was $7.2 billion on revenue of $146.9 billion, up 26.3 percent from 2012 profit of $5.7 billion on revenue of $133.6 billion.

 

Ford said its 2014 outlook was unchanged with total company pre-tax profit expected to range from $7 billion to $8 billion.

 

Ford shares were up 2.1 percent at $16.04 in pre-market trade.

 

(Agence France-Presse, 28 Tuesday January 2014 The Roman)

 

Fiat disappoints with profits, waives dividends

Fiat disappoints with profits, waives dividends

 

Milan (AFP)

 

Italian car giant Fiat on Wednesday reported 2013 results which were below analysts expectations and said it would be waiving dividends, causing shares in the group to plummet.

 

The carmaker reported a trading profit of 931 million euros ($1.27 billion) for the fourth quarter of 2013, less than the 1.5 billion euros forecast by analysts.

 

The Turin-based company also cut its 2014 forecast more than expected, to between 3.6 to 4.0 billion euros -- down from a previous estimate of up to 5.2 billion euros.

 

Subsequently, the board of directors "has decided not to recommend a dividend payment on Fiat shares, given the company's desire to maintain a balanced level of liquidity following the acquisition of the minority stake in Chrysler Group LLC," the company said in a statement.

 

Shares were down 4.37 percent on the FTSE Mib market at midday.

 

Fiat blamed in part a profit drop on conditions in Latin America, which it said was due primarily to "input cost inflation, unfavourable production mix and lower result in Venezuela."

 

(Agence France-Presse, 29 Wednesday January 2014 The Roman)