Car giant Ford Motor Co. (NYSE:F) swung to a net loss in the fourth quarter after hefty special charges related to the cancellation of a plant in Mexico and its pension plans, although its operating numbers matched market expectations.
Ford reported a loss of US $783mln, or 20 cents per share for the three months to December 31, impacted by the US $3bn non-cash accounting provision which it revealed announced last week.
Excluding special items, the group’s profit was 30 cents per share, which matched analyst’s expectations.
The number two US automaker also maintained its outlook for 2017 which calls for lower profit than in 2016.
Sales decline …
Ford’s fourth-quarter revenues fell by 4% to US$38.7bn reflecting lower global sales, including a 2% decline in US sales in the period.
The firm’s operating profits were US$2.1bn for the quarter, down 20% from the same period in 2015 but still a record for the quarter.
Full-year 2016 operating results were $10.4bn, slightly ahead of guidance and the automaker's second-best pretax profit in history.
Ford had hoped to deliver another record year in 2016, but in September it cut its full-year guidance after announcing it would take a US$600mln charge related to an expanded safety recall.
The group took another US$200mln charge on the cancellation of its planned assembly plant in Mexico, which it started constructing last summer, reflecting pressure from newly-elected US President Donald Trump for carmakers to build more vehicles at home.
Fiat Chrysler doubles …
Elsewhere in the sector, Fiat Chrysler Automobiles NV (NYSE:FCAU) today saw its fourth-quarter net profit more than double from a year earlier and gave a rosy outlook for 2017
The merged Italian/US firm said its net profit rose to €409mln (US$438.74mln) for the three months to December 31, up from €196mln in the same period in 2015,
Adjusted operating profit, which stripped out one-off items, however, was little changed in quarter, while revenue rose 1% to €29.72bn
Last year, the company made 85% of its profit in North American with the bulk of that coming from the US.
Fiat Chrysler forecast 2017 revenues of at least €115bn and adjusted operating profit of at least €7bn
The group also forecast that its net debt will almost halve to less than €2.5bn, well below the estimates of most analysts.