Ford Swings to $800 Million Loss
January 26 2017 - 07:49AM
Dow Jones News
By Christina Rogers
Ford Motor Co. swung to a net loss of $800 million in the fourth
quarter of 2016, as special charges related to its pension plans
and the cancellation of a plant in Mexico overshadowed strong
operating results in North America and improving profitability in
Europe.
Revenue for the just-ended quarter fell 4% to $38.7 billion on
lower global wholesales, including in North America where U.S.
sales declined 2% during the period.
Ford on Thursday reported fourth-quarter operating profits of
$2.1 billion, down 20% from the same period in 2015 but still a
record for the quarter.
Adjusted earnings per share was 30 cents in the fourth quarter,
a 1-cent miss from Wall Street expectations of 31 cents a
share.
Full-year operating results were $10.4 billion in 2016, slightly
ahead of guidance and the auto maker's second-best pretax profit in
history.
Company executives had hoped to deliver another record year in
2016, but in September, Ford cut full-year guidance after
announcing it would take a $600 million charge related to an
expanded safety recall.
Ford's full-year net income of $4.6 billion, down 60% over the
prior-year, was dented by a hefty $3 billion special-item charge
booked in the fourth-quarter related to a remeasurement of the
assets and obligations in Ford's retiree-benefit plans. Ford took
another $200 million charge in the same quarter on the cancellation
of its assembly plant in Mexico, which it started constructing last
summer.
Write to Christina Rogers at christina.rogers@wsj.com
(END) Dow Jones Newswires
January 26, 2017 07:34 ET (12:34 GMT)
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