Ford Motor Co. posted a 56-percent drop in net income in 2014 to $3.2 billion, bogged down by the cost of introduction of 22 new vehicles globally as well as by a drop in its share of the United States auto market. While the carmaker earned $52 million in the fourth quarter, it was much lower than the $3 billion posted in the same period in 2013, when the company benefited from favorable tax benefits.
Ford logged a 2-percent drop in annual revenue to $144.1 billion, with fewer trucks and other vehicles coming off the assembly line. Chief executive Mark Fields said in a statement that while 2014 was a solid year for Ford, it was a challenging one.
He remarked that the investments and new products launched globally last year should position Ford for strong growth in 2015 and beyond. In the fourth quarter of 2014, Ford incurred a $800-million pretax charge related to currency devaluation in Venezuela.
Setting aside that one-off cost and other special items, Ford posted a 15-percent drop in quarterly operating profit to $1.1 billion.
Ford posted 22-percent lesser earnings in 2014 in North America to $6.9 billion, which should result to a drop in profit-sharing check amount from an average of $8,800 last year to $6,900 this year for a total of $345 million.
With output and sales of vehicles launched last year ramp up, Ford sees $9.5 billion in pretax profit this year. According to the carmaker, its dealers will have a full supply of the MY2015 F-150s around April.
The carmaker saw its sales in the US drop 1 percent in 2014, resulting to 1-percentage point drop in market share from 15.9 percent to 14.9 percent – blaming the dive mainly to the F-150 production changeover. [source: Ford]