Ford Motor Company's fourth quarter earnings fell short of estimates. Pension and layoff costs, alongwith overseas business struggles seemed to take a toll on the automaker’s bottom line.
Ford’s revenue in North America grew by $1.7 billion. But it experienced decline in sales in every foreign region during the quarter. Unfavorable moves in exchange rates and lower sales volume - especially in Europe and Asia - were to blame. What's more, Ford took a $1.18 billion charge for "special items" , mostly consisting of pension and layoff costs.
The company’s fourth quarter adjusted earnings per share of 30 cents was below consensus forecast of 32 cents per share (estimates compiled by Refinitiv). It was also lower than the year-ago quarter’s 39 cents a share.
Automotive segment revenue of $38.7 billion fell below estimate of $36.88 billion (based on Refinitiv data).
On an unadjusted basis, Ford incurred losses of $116 million, during the fourth quarter, compared to a profit of $2.52 billion a year earlier. Nevertheless, total revenue of $41.8 billion was slightly higher than the year-ago period’s $41.3 billion.