Ford Motor Company (F) reported mixed results for the fourth quarter when adjusted earnings dropped and missed analysts’ forecast. Revenues moved up and topped estimates aided by favorable product mix and pricing in the North American market. The company’s stock made modest gains during the extended trading session Wednesday.
Adjusted earnings, excluding special items, dropped to $0.30 per share from $0.39 per share in the year-ago quarter and missed Wall Street’s expectations. On an unadjusted basis, the company reported a loss of $0.12 billion or $0.03 per share, compared to a profit of $2.52 billion or $0.63 per share in the comparable period a year earlier.
The bottom line was negatively impacted by expenses related to Ford’s massive reorganization program, including pension and severance costs. Changes in exchange rates, especially in Europe and Asia, also weighed down on profitability.
The bottom line was negatively impacted by expenses related to Ford’s massive reorganization program
Revenues, meanwhile, moved up 1% to $41.8 billion, far exceeding the estimates. While North America registered an increase, supported by the growing demand for pickup trucks and SUVs, sales declined in almost all overseas markets including Latin America. Total wholesale shipment volume plunged 16% annually to 1,474,000 units.
“We have consistently laid the foundation for the global redesign of our business, clearly investing to sharpen our competitiveness so we can better serve customers and invest for the future. Ford enters 2019 with a clear vision, a solid plan, and we are now in execution mode,” said CEO Jim Hackett.
The management expects revenue performance to improve in the current fiscal year, compared to last year. There will be extra focus on China, where the company intends to launch ten new products during the year.
Recently, Ford embarked on an extensive restructuring program that involved large-scale workforce reduction and downsizing across all markets. In a significant move, the company is also phasing out its passenger car models to focus more on bigger vehicles.
Shares of Ford traded sharply lower throughout Wednesday’s regular session, and gained slightly in the aftermarket session following the earnings report. In the past twelve months, the stock lost about 29%.