UNITED STATES (OBSERVATORY NEWS) — Net loss of the American automaker Ford Motor Co. in October-December 2019 amounted to $ 1.7 billion, or $ 0.42 per share, compared with a loss of $ 100 million, or $ 0.03 per share, for the same period of the previous year. The indicator includes expenses of $ 2.2 billion related to the revision of pension plans, mainly for Ford employees abroad. The automaker warned of these expenses earlier this month.
Quarterly earnings excluding one-time factors were $ 0.12 per share, compared with $ 0.3 per share a year earlier, the company said in a press release. The average forecast of experts surveyed by FactSet for this indicator was $ 0.17 per share.
Ford’s fourth-quarter revenue fell 5% to $ 39.7 billion from $ 41.8 billion a year earlier, with a market consensus forecast of $ 39.6 billion.
In the first quarter of 2020, adjusted profits will be $ 1.1 billion less than a year earlier, due to the expected increase in warranty repair costs, as well as lower car sales, worsening Ford Credit indicators and increased investment in the development of self-driving cars, the press said. release.
According to Ford’s forecast, in 2020 the adjusted profit will be $ 5.6-6.6 billion. The forecast assumes that the growth in profits from automobile operations compensates for the decrease in Ford Credit results and a “moderate increase” in investments in the development of self-driving cars.
At the end of 2019, the automaker’s net profit was only $ 47 million, or $ 0.01 per share, compared with $ 3.68 billion, or $ 0.92 per share, a year earlier. The fall in profits in the company is explained by the high costs of restructuring operations in Europe, as well as the costs of adjusting pension plans. Annual earnings excluding one-time factors amounted to $ 6.4 billion, or $ 1.19 per share.
Ford’s revenue in 2019 decreased by 3%, to $ 155.9 billion.
Ford shares fell 9.6% in additional trading on Wednesday. Their value has increased by 4.9% over the past 12 months.
This article is written and prepared by our foreign editors writing for OBSERVATORY NEWS from different countries around the world – material edited and published by OBSERVATORY staff in our newsroom.
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