Ford Earns $1.6 Billion As European Losses Mount

Ford Motor Co. netted $1.6 billion in the fourth quarter of last year compared with $13.6 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 in the October-December period. Revenue rose 5% to $36.5 billion.

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

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

Revenue dipped $2 billion year over year to $134.3 billion last year.

Operating profit in North America climbed 34% to a record $8.3 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 to continue to improve in 2013.

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

The company projects a $2 billion loss in Europe this year up from its previous forecast of $1.5 billion because it expects a regionwide recession. CFO Bob Shanks says Ford predicts about $500 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.