Ford logs 24% drop in pretax profit in fourth quarter 2013

Article by Christian A., on January 30, 2014

Ford Motor Co. logged a 24-percent drop in pretax operating profit in the fourth quarter of 2013, no thanks to the recall of the Ford Escape, higher incentives and factory shutdowns in South America. Revenue also surged 4 percent in the fourth quarter to $36.3 billion. The carmaker also posted a 9-percent dip in pretax operating profit in North America to $1.7 billion in the fourth quarter.

Ford said that its results in North America suffered from higher warranty and structural costs as well as lower net pricing. The company accrued $300 million in warranty costs, mainly related to a November recall of over 161,000 Ford Escapes to fix a glitch linked to 13 fires.

Net income for the quarter of 2013, however, surged to $3 billion, over two-thirds of which were due to favorable one-time tax benefits. This helped Ford post $7.2 billion in net income for full year 2013, up from $5.7 billion in 2012. Ford’s automotive operations logged $6.9 billion in pretax profit in 2013. Revenue for full year 2013 was up 10 percent to $146.9 billion.

Ford managed to sell 2,485,236 vehicles in the United States in 2013 for an 11-percent surge. It also managed to hike its US market share to 15.9 percent. The good results for 2013 means that the carmaker’s 47,000 UAW-represented hourly employees will receive profit-sharing checks averaging $8,800 for a total $414 million.

"We had an outstanding year in 2013, demonstrating that our One Ford plan continues to drive solid results and profitable growth for all," Ford chief Alan Mulally said in a statement. "We are well positioned for another solid year in 2014." [source: Ford]

Topics: ford, profit

If you liked the article, share on:

Comments

Recommended

We first heard of the fifth generation SEAT Ibiza earlier this year, and last week, the company finally revealed the all-new Ibiza at the international launch in Barcelona. The new...
by - May 22, 2017
The aftermath of the Takata airbag recall still largely resounds in the automotive industry, as big automotive companies like BMW, Mazda, Subaru and Toyota were extensively hit with what is...
by - May 22, 2017
Amid reports that major rival Volkswagen would cease producing 2016 and 2017 model year diesel cars following the wake of the "Dieselgate" scandal, it’s believed that Chevrolet sees its opportunity...
by - May 22, 2017
Honda recently whips out a new feature for the S660 Bruno Leather Edition. Any guesses? Well, it’s going to be an iPhone app that goes by the name Rev Beat....
by - May 22, 2017
And so it goes, Ford is not at all closing its doors to an all-electric F-150 pickup. The American manufacturer initially laid out its plans for an F-150 hybrid earlier...
by - May 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries