Ford Earns €1.2 Billion As European Losses Mount

Ford Motor Co. netted $1.6 billion (€1.2 billion) in the fourth quarter of last year compared with $13.6 billion (€10.1 billion) in the same period of 2011 when a one-time tax gain inflated results.

Pretax operating income jumped 52% year over year to $1.7 billion (€1.3 billion) in the October-December period. Revenue rose 5% to $36.5 billion (€27.1 billion).

The company's North American auto operations earned $1.9 billion (€1.4 billion) pretax in the quarter.

For the full year, Ford posted net profit of $5.7 billion (€4.2 billion) compared with $20.2 billion (€15 billion) in 2011. Pretax earnings slid 9% to $8 billion (€5.9 billion).

Revenue dipped $2 billion (€1.5 billion) year over year to $134.3 billion (€99.8 billion) last year.

Operating profit in North America climbed 34% to a record $8.3 billion (€6.2 billion) in 2012. The region's operating margin grew 2.1 points to a record-high 10.4% of sales. The company predicts North American earnings will continue to improve in 2013.

Ford's European unit lost $732 million (€544 million) in the fourth quarter and $1.8 billion (€1.3 billion) for the full year. The latter deficit was $250 million (€186 million) greater than the company predicted in October.

Ford projects a $2 billion (€1.5 billion) loss in Europe this year up from its previous forecast of $1.5 billion (€1.1 billion) because it expects a regionwide recession. CFO Bob Shanks says Ford expects about $500 million (€372 million) in restructuring costs in the region in 2013.

The company projects that companywide profit this year will be about the same as in 2012.