Q4 Earnings Call Gains in North America, Despite Interest Dip in China and Europe: Ford
Yesterday Ford released its fourth-quarter earnings calls. There has been a 1 percent improvement in comparison to 2018’s Q4 revenues overall. Also, there has been a 2 percent gain for the entire year. On the other hand, there has been a serious drop in the interest in China and Europe. The CEO of the company said-
“In 2018, our F series outsold the nearest competitor by the widest margin ever,”
As per the reports obtained from CCN, Ford is now focusing on ‘zero-emission version of the popular F-150 pickup trucks. Last, to last year, the ‘automotive structural’ cost at Ford raised more than 1 Billion Dollars. But eventually, the company managed to tame it and kept is constant after that year. The company aims to keep it constant this year too.
On the other hand, Ford is also looking into expanding into ‘mobility’ industry. Last year, the company launched operations in Detroit soon after gaining San Francisco based Spin. Approximately the e-scooter company costs almost 50 million dollars to the company.
The company is also strongly progressing in electric and zero-emission models of its existing Ford models. Last year the company launched its fuel-efficient car models in China and Europe, but it met a downturn there. According to the company’s executives, the main reason behind this downturn in interest is the tariffs and not so favorable sales activities both in China and Europe.
During the earnings call, CFO- Bob Shanks said-
“In a year of no global growth in industry volume and relatively light new product action at Ford, we delivered very strong market factors. […] We delivered 45 percent of this in the fourth quarter alone. […] In 2019 we have planned a year of more significant product actions in growing segments.”
Shanks told that the company spent an approximate amount of 750 million dollars last year on the tariff based effects. It has also spent 1.1 Billion dollars on the ‘commodity costs.’ And for the product recall, Ford spent a rough amount of 775 million dollars in 2018.
As a return, the company lost about 1.8 billion in annual performance in China. In North America, the company managed to create 2 billion dollars. On the other hand, the firm made only 1.1 Billion EBIT (earnings before interest and taxes.) The company’s credit program managed to earn 600 Million dollars to which Shanks said-
“US consumer metrics remain healthy.”
Ford wrapped up last year with 23 Billion dollars in hand, with total liquidity that soared above 30 Billion dollars. Overall the company earned an approximate amount of 7 Billion dollars.