Ford Swings to $800 Million Loss
27 January 2017 - 12:46AM
Dow Jones News
By Christina Rogers
Ford Motor Co. swung to a net loss of $800 million in the fourth
quarter of 2016, as special charges related to its pension plans
and the cancellation of a plant in Mexico overshadowed strong
operating results in North America and improving profitability in
Europe.
Revenue for the just-ended quarter fell 4% to $38.7 billion on
lower global wholesales, including in North America where U.S.
sales declined 2% during the period.
Ford on Thursday reported fourth-quarter operating profits of
$2.1 billion, down 20% from the same period in 2015.
Adjusted earnings per share was 30 cents in the fourth quarter,
a 1-cent miss from Wall Street expectations of 31 cents a
share.
Full-year operating results were $10.4 billion in 2016, slightly
ahead of guidance and the auto maker's second best pretax profit in
history.
Company executives had hoped to deliver another record year in
2016, but in September, Ford cut full-year guidance after
announcing it would take a $600 million charge related to an
expanded safety recall.
Ford's full-year net income of $4.6 billion, down 60% over the
prior-year, was dented by a hefty $3 billion special-item charge
booked in the fourth-quarter related to a remeasurement of the
assets and obligations in the Ford's retiree-benefit plans. Ford
took another $200 million charge in the same quarter on the
cancellation of its assembly plant in Mexico, which it started
constructing this summer.
Write to Christina Rogers at christina.rogers@wsj.com
(END) Dow Jones Newswires
January 26, 2017 08:31 ET (13:31 GMT)
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