Ford Posts $1.6 Billion Fourth-Quarter Profit, 2012 Full-Year Profit of $5.7 Billion
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Ford Posts $1.6 Billion Fourth-Quarter Profit, 2012 Full-Year Profit of $5.7 Billion
http://wot.motortrend.com/ford-posts...#axzz2JIeZlIGJ
Ford Motor Company finished 2012 on a high note, and revealed today that it recorded net income of $1.6 billion in the fourth quarter of 2012. That’s up from $1.03 billion in the fourth quarter of 2011. As a result, Ford’s full-year net income rose to $5.7 billion — up from $5.66 billion in 2011.
Ford Motor Company finished 2012 on a high note, and revealed today that it recorded net income of $1.6 billion in the fourth quarter of 2012. That’s up from $1.03 billion in the fourth quarter of 2011. As a result, Ford’s full-year net income rose to $5.7 billion — up from $5.66 billion in 2011.
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Ford's brisker recovery is due to the company's recent turnaround in the North American market. The Dearborn-based automaker is essentially using the blueprint from its North American turnaround to help pull itself out of Europe's growing debt crisis.
“In the case of Ford, ultimately, this is the team that without external help was able to accomplish in North America what almost nobody thought was going to be possible,” Peter Nesvold, a Jefferies Group Inc. analyst, told Bloomberg. “The problems aren’t identical in Europe, but they are similar.”
Ford is optimistic that it will be able to break-even in Europe no later than 2015. General Motors, on the other hand, won't likely stem its European losses until 2016.
“In the case of Ford, ultimately, this is the team that without external help was able to accomplish in North America what almost nobody thought was going to be possible,” Peter Nesvold, a Jefferies Group Inc. analyst, told Bloomberg. “The problems aren’t identical in Europe, but they are similar.”
Ford is optimistic that it will be able to break-even in Europe no later than 2015. General Motors, on the other hand, won't likely stem its European losses until 2016.
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So what exactly are they gonna do differently in Europe?
In the USA, they signed new contracts with the UAW and improved quality. In Europe, Ford's quality is already one of the best and I'm not sure how unions work there. But overall, the entire European market's in a trouble and majority of car companies were are having big losses.
In the USA, they signed new contracts with the UAW and improved quality. In Europe, Ford's quality is already one of the best and I'm not sure how unions work there. But overall, the entire European market's in a trouble and majority of car companies were are having big losses.
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The industry is fighting the headwinds of Europe's mess of an economy. Ford expects lackluster sales for 13.
Last edited by cdynaco; Jan 29, 2013 at 02:11 PM.
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Good example of why China is important. Only 3.2% market share, but that = 19 - 21+ million units.
2013 Outlook
For full year 2013, Ford expects industry volume (including medium and heavy trucks) of 15.0 million units–16.0 million units in the U.S. compared with 14.8 million units in 2012; 13.0 million units–14.0 million units in the 19 European markets covered by the automaker compared with 14.0 million units in 2012; and 19.5 million–21.5 million units in China compared with 19.0 million units in 2012.
The company expects its 2013 market share in the U.S. to be higher than 2012, Europe to be almost the same as in 2012, and China to be higher than 2012. Its market share in 2012 was 15.2% in the U.S., 7.9% in Europe and 3.2% in China.
During the year, Ford anticipates total company pre-tax operating profit to be the same as in 2012. Ford Credit is expected to report flat pre-tax operating profit compared with 2012.
http://www.zacks.com/stock/news/9147...a-fuels-growth
2013 Outlook
For full year 2013, Ford expects industry volume (including medium and heavy trucks) of 15.0 million units–16.0 million units in the U.S. compared with 14.8 million units in 2012; 13.0 million units–14.0 million units in the 19 European markets covered by the automaker compared with 14.0 million units in 2012; and 19.5 million–21.5 million units in China compared with 19.0 million units in 2012.
The company expects its 2013 market share in the U.S. to be higher than 2012, Europe to be almost the same as in 2012, and China to be higher than 2012. Its market share in 2012 was 15.2% in the U.S., 7.9% in Europe and 3.2% in China.
During the year, Ford anticipates total company pre-tax operating profit to be the same as in 2012. Ford Credit is expected to report flat pre-tax operating profit compared with 2012.
http://www.zacks.com/stock/news/9147...a-fuels-growth
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In the United States, they signed new contracts with the UAW and better quality. In Europe, Ford now has been one of the best and I'm not sure what unions working there. But overall, the whole European market is a problem and most companies have large losses.
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So what exactly are they gonna do differently in Europe?
In the USA, they signed new contracts with the UAW and improved quality. In Europe, Ford's quality is already one of the best and I'm not sure how unions work there. But overall, the entire European market's in a trouble and majority of car companies were are having big losses.
In the USA, they signed new contracts with the UAW and improved quality. In Europe, Ford's quality is already one of the best and I'm not sure how unions work there. But overall, the entire European market's in a trouble and majority of car companies were are having big losses.
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excerpts:
Why Ford Is Still a Buy
January 30, 2013
Ford's factories in the U.S. now run at, on average, over 100% of what Ford considers to be "full capacity," which is two full shifts. That means some are working around the clock – a big profit generator. The industry rule of thumb is that a car factory breaks even at about 80% of capacity.
Ford's European factories have been running at more like 60% of capacity. See the opportunity? Ford does: It's closing three factories, and it has signaled that it will close more if necessary. That will lower costs, making each of Ford's sales more profitable – even if the overall market stays stagnant.
There's more. In recent years, Ford's product lineup in Europe has been a small one, composed mostly of locally designed offerings that were somewhat expensive to produce. But now, Ford has a powerhouse global vehicle lineup to tap – and it's able to add a bunch of new vehicles to its European lineup quickly, and at low cost. That right there should increase Ford's sales and market share -- even if the overall market stays stagnant.
Put simply, Ford is taking the lessons of its U.S. turnaround and applying them to fix Europe, where it has said it expects to return to break-even by mid-decade. And we as investors should give that approach a high probability of success, because it has already worked once.
http://www.fool.com/investing/genera...ill-a-buy.aspx
January 30, 2013
Ford's factories in the U.S. now run at, on average, over 100% of what Ford considers to be "full capacity," which is two full shifts. That means some are working around the clock – a big profit generator. The industry rule of thumb is that a car factory breaks even at about 80% of capacity.
Ford's European factories have been running at more like 60% of capacity. See the opportunity? Ford does: It's closing three factories, and it has signaled that it will close more if necessary. That will lower costs, making each of Ford's sales more profitable – even if the overall market stays stagnant.
There's more. In recent years, Ford's product lineup in Europe has been a small one, composed mostly of locally designed offerings that were somewhat expensive to produce. But now, Ford has a powerhouse global vehicle lineup to tap – and it's able to add a bunch of new vehicles to its European lineup quickly, and at low cost. That right there should increase Ford's sales and market share -- even if the overall market stays stagnant.
Put simply, Ford is taking the lessons of its U.S. turnaround and applying them to fix Europe, where it has said it expects to return to break-even by mid-decade. And we as investors should give that approach a high probability of success, because it has already worked once.
http://www.fool.com/investing/genera...ill-a-buy.aspx
Last edited by cdynaco; Feb 1, 2013 at 11:18 PM.
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In recent years, Ford's product lineup in Europe has been a small one, composed mostly of locally designed offerings that were somewhat expensive to produce. But now, Ford has a powerhouse global vehicle lineup to tap – and it's able to add a bunch of new vehicles to its European lineup quickly, and at low cost. That right there should increase Ford's sales and market share -- even if the overall market stays stagnant.
What exactly is Ford missing in Europe? They have pretty much every class covered. They're adding the Edge and the Mustang, which most likely won't sell more than few thousands units each, and the EcoSport, which will probably do much better.
Ford just finished the 2012 as the 2nd best selling brand in Europe, so I don't think they really need more vehicles. They just need to figure out how to cut down on costs ...
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