Ford Posts $13.6-billion 4Q Net Income: Nobody’s Impressed

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Ford Posts $13.6-billion 4Q Net Income: Nobody’s Impressed

While 2011 marked Ford‘s biggest profit since 1998, fourth quarter results were still below the estimates of financial analysts. Despite marking Ford’s 11th consecutive quarterly profit, investors showed concern regarding the American automaker’s $190 million loss in Europe and $83 million loss in Asia. Ford stock had fallen 5.5 percent to $12.04 a share in the first half-hour of trading Friday morning.

Even though Barclays Capital analyst Brian Johnson said all regions were below expectations, the North American posted a quarter net income of $13.6 billion. CFO Lewis Booth admitted, “The quarter was driven by North America.”

Ford CEO Alan Mulally added, “We delivered strong results for the full year as we continued to serve our customers around the world.”

Going forward, Lewis Booth assures that the North American market will remain extremely strong, South America will remain consistently profitable as regional vehicles get replaced by Ford’s global line-up, and Asia will return to profitability.

Ever since Ford had been the only automaker of the Big Three to not accept a government loan during the financial crisis, great expectations have rested on Ford’s shoulders. Despite the market’s reaction to Ford’s latest fourth-quarter report, Ford is confident of sustaining profitability as it reveals promising products like the upcoming 2013 Ford Fusion.

Ford stock was traded at $12.21 a share, down 4.16 percent, when Friday’s market closed.

[Source: Detroit Free Press]

  • Soakee

    I don’t understand these so-called “analysts”. They are provided with an estimate of earnings, and then when the estimate doesn’t agree with actual numbers, they are shocked. Hello!!! An estimate is just that, an ESTIMATE! Estimates by definition never agree with actuals, otherwise they wouldn’t be estimates.

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