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Ford’s 4Q17 Operating Profit Drops 19%
Ford Motor Co.’s revenue and net income rose in the fourth quarter of 2017. But operating income sagged on higher commodity prices and unfavorable exchange rates.
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Ford Motor Co.’s revenue and net income rose in the fourth quarter of 2017. But operating income sagged on higher commodity prices and unfavorable exchange rates.
The company’s quarterly revenue climbed 7% to $41.3 billion. Net income swung to a $2.4 billion gain from an $800 million loss in the same period in 2016, when hefty pension fund payments hurt results.
But adjusted pretax operating profit in October-December plunged to $1.7 billion from $2.1 billion a year ago. Ford blames the decline on adverse currency effects and higher prices for aluminum, steel and other raw materials. The company cautioned analysts last week that those factors will cut results this year by $1.6 billion.
Vehicle wholesale volume in the fourth quarter advanced 2% to 1.75 million units. Revenue rose 7% to $38.5 billion. But pretax profit shrank 30% to $1.4 billion. The company reported quarterly gains in volume and revenue in North America, South America and Europe. In Asia Pacific, unit sales fell 6%, but revenue expanded 12%.
Ford’s full-year revenue and net income grew 3% to $156.8 billion and 65% to $7.6 billion, respectively. Worldwide vehicle wholesales totaled 6.61 million units, up less than 1%.
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