Ford’s Net Profit Jumps to $7.4 Billion

Ford Motor Co. reports net income of $7.4 billion in 2015 compared with $1.2 billion in 2014 in what it describes as a breakthrough year. Pretax profits surged 48% to a record $10.8 billion.

Ford says it will pay a record $9,300 in profit sharing in March to employees who belong to the United Auto Workers union.

The company's revenue in 2015 grew 4% to $150 billion. Wholesale shipments of cars and trucks rose 5% to 6.64 million units. Net cash jumped 37% to $10.8 billion. The company’s operating margin rose to 6.8% from 4.6% in 2014.

Fourth’s fourth-quarter revenue last year expanded 12% to $40.3 billion, and operating profits doubled to $2.6 billion. Net income zoomed to $1.9 billion, reversing a revised $2.5 billion net loss in October-December 2014. Vehicle wholesales grew 12% to 1.78 million units.

In North America, Ford’s pretax profits in the fourth quarter rose 26% to $2 billion, as wholesales climbed 15% to 808,000 units and revenue rose 19% to $24.9 billion. For the full year, vehicle shipments gained 8% to 3.07 million units, revenue grew 12% to $92 billion and pretax profit surged 26% to $9.3 billion.

In Asia Pacific, fourth-quarter shipments rose 16% to 443,000 units. Revenue jumped 31% to $3.4 billion, and pretax profit skyrocketed to $444 million from $95 million. Full-year wholesales improved only 2% to 1.46 million units, leaving revenue unchanged at $10.7 billion. Pretax results for the year grew 29% to a record $765 million.

In Europe, a 21% hike in fourth-quarter wholesales to 390,000 vehicles raised revenue 7% to $7.3 billion, helping to reverse a pretax loss of $297 million with a profit of $131 million. For the full year, unit shipments advanced 10% to 1.53 million units, but revenue slipped 4% to $28.2 billion. The company overcame a $598 million pretax loss in 2014 with a $259 million profit last year.

In South America, Ford’s fourth-quarter losses deepened, as shipments plunged to 80,000 units from 132,000 in October-December 2014. Revenue plummeted to $1.2 billion from $2.5 billion. Pretax losses expanded to $295 million from $187 million. For calendar 2015, the company’s wholesales fell 18% to 381,000 units, Revenue shrank by one-third to $5.8 billion, and pretax losses narrowed 29% to $832 million.