Ford also faced pressure on several other fronts during the quarter and last year, executives said. Tariffs cost the automaker $750 million in 2018 while higher commodities prices shaved $1.1 billion from its bottom line. It also took a $750 million hit last year from unfavorable foreign exchange rates and ate $775 million in costs related to recalls announced last year in North America, Chief Financial Officer Bob Shanks told analysts on a conference call discussing the results.
“Certainly it’s been a challenging year,” CEO Jim Hackett said on the call. He noted “headwinds outside of our control and frankly, poor performance in some parts of the business which we have now taken action to address.”
Hackett said Ford laid the foundation last year “for a much stronger, more resilient and more dynamic business. A business that we want to tell you can thrive now and in the future.”
Here’s how the company did compared with what Wall Street expected, based on average estimates compiled by Refinitiv:
— Adjusted earnings per share of 30 cents vs. a forecast of 32 cents per share
— Automotive segment revenue: $38.7 billion vs. a forecast of $36.88 billion
Ford took a $1.18 billion charge for “special items” that were excluded from its adjusted earnings. The charges stem mostly from pension and layoff costs. On an unadjusted basis, Ford lost $116 million, or 3 cents a share, during the fourth quarter. It generated a profit of $2.52 billion, or 63 cents per share, a year earlier.
The company’s total revenue was $41.8 billion during the quarter, slightly higher than its $41.3 billion in revenue during the same quarter last year.
“While 2018 was a challenging year, we put in place key building blocks to build a more resilient and competitive business model that can thrive no matter the economic environment,” Shanks said in a statement.
Despite the losses, Ford expects to be able to fully fund its business and capital needs in 2019, while keeping cash and liquidity at or above target levels, Shanks said.
On an adjusted basis, the company earned 30 cents a share, which missed analyst expectations of 32 cents per share, according to analysts surveyed by Refinitiv. It was also less than the 39 cents a share the company reported in the same quarter of 2017.
from News fore today http://bit.ly/2HvH7nD
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