Strong North American Results Boost Ford Earnings


  • 2013 Ford F-150 Limited

    2013 Ford F-150 Limited

    Products like the 2013 Ford F-150 Limited helped to bolster Ford earnings in 2012. | January 29, 2013

Just the Facts:
  • Strong North American results, powered in part by sales of the Ford F-Series, helped Ford to post a fourth-quarter net income of $1.6 billion.
  • Ford said it earned $5.7 billion in 2012, a 5 percent drop from 2011.
  • As part of its contract with the United Auto Workers, Ford said it will make profit-sharing payments of approximately $8,300 to about 45,800 eligible U.S. hourly workers on March 14.

DEARBORN, Michigan — Strong North American results, powered in part by sales of the Ford F-Series, helped Ford to post a fourth-quarter net income of $1.6 billion, up 55 percent from 2011, the automaker said on Tuesday.

Ford said it earned $5.7 billion in 2012, a 5 percent drop from 2011, not including the tax-valuation changes that had increased the 2011 earnings to $20.2 billion.

"We are well positioned for another strong year in 2013, as we continue our plan to serve customers in all markets around the world with a full family of vehicles," said Alan Mulally, Ford's chief executive, in a statement.

Ford was hit with an operating loss of $732 million in Europe in the fourth quarter. The company lost almost $1.8 billion in Europe for the full year versus a loss of $27 million in 2011.

"For the full year, Ford Europe continued to be negatively impacted by the challenging economic conditions in the region," said Ford.

As part of its contract with the United Auto Workers, Ford said it will make profit-sharing payments of approximately $8,300 to about 45,800 eligible U.S. hourly workers on March 14. The profit-sharing payments are generated by Ford's North American pretax profit of $8.3 billion for the year.

"Ford's strong 2012 performance came almost entirely from North America, and the same will be true in 2013," said Michelle Krebs, Edmunds senior analyst. "As a result, Ford can have no missteps in 2013."

Edmunds says: It will be interesting the watch the impact of such products as the redesigned 2013 Ford Fusion on Ford's bottom line in the coming year.

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