Ford Quarterly Operating Profit Falls, Net Income Soars

Ford Motor Co. hiked global sales 7% to 1.6 million vehicles in the fourth quarter of 2013. But operating profit plunged 24% to $1.3 billion (€952 million) because of investments related to growth and new products.

Revenue rose 4% to $37.6 billion (€27.5 billion) for the three-month period. Favorable tax items boosted the company's net earnings 88% to $3 billion (€2.2 billion).

In Europe, the company reduced its quarterly pre-tax loss 22% to $571 million (€418 million). Unit sales in the region slipped 3% to 318,000 vehicles, but revenue climbed 9% to $7.1 billion (€5.2 billion).

In North America, Ford's quarterly revenue advanced 2% to $22.5 billion (€16.5 billion). Unit volume grew less than 1% to 760,000 vehicles.

Results were mixed elsewhere. South America swung to a $126 million (€92 million) loss, as unit sales dropped 6% to 135,000 and revenue fell 13% to $2.7 billion (€2 billion).

In Asia-Pacific/Africa, pretax profit more than doubled to $106 million (€78 million). Unit sales surged 29% to 397,000, and revenue climbed 18% to $3.3 billion (€2.4 billion).

For the full year, Ford's pretax and net earnings rose 8% to $8.6 billion (€6.3 billion) and 26% to $7.2 billion (€5.3 billion), respectively. Revenue grew 10% to $146.9 billion (€107.5 billion) on sales of 6.3 million vehicles, up 12% from 2012.

Last year Ford narrowed its operating loss in Europe 11% to $1.6 billion (€1.2 billion).