At the end of the year, Ford was in the red due to high special charges and increasing problems in China and Europe. The bottom line was a loss of $ 116 million (€ 102.17 million) in the fourth quarter, as the second largest US automaker announced yesterday after the US market closed in Dearborn.
In the same period last year, there had been a profit of 2.5 billion dollars. Adjusted operating income decreased 28 percent to $ 1.5 billion. After all, sales increased slightly to $ 41.8 billion. Despite the weak numbers, the market reaction was relaxed – the stock was initially slightly up in the stock market. Ford had already dampened expectations over the past week.
The auto giant does well thanks to popular SUVs and pick-ups in the US home market, where he recently scored his entire profit, but has international difficulties. The European business made an operating loss of $ 199 million in the final quarter. Asia lost $ 381 million. Also in South America, the Middle East and Africa, there were red numbers.
The balance was finally nailed down by a write-down of approximately $ 900 million on pension plans. An additional burden is the tariff dispute between the US and trading partners such as China and the EU, which significantly increases the cost of materials for carmakers.
Ford CEO Jim Hackett has already announced a major corporate restructuring, which should cut costs massively. Thousands of jobs could be canceled in Europe, too.