Saturday, March 1, 2014

Ford Drives Ahead With Impressive Performance In Its Key Markets

This article was originally published by GuruFocus 

By Sarfaraz A. Khan, Research Assistant: Gohar Yousuf
March 1, 2014
The second largest auto maker of the U.S. and fifth biggest automaker of the world, Ford Motor Co. (F) is on a roll. Ford is expecting significant growth in China. The company has been going strong in Europe where it has recently reported solid growth of 8.8% for the month of January, the best figures among the Detroit automakers. Meanwhile, the company has been witnessing higher production volume in North America, where its profits were higher than market’s expectations.

Earnings Beat

In its previous results for the fourth quarter, Ford reported better than expected earnings and revenues, largely due to the improved performance in North America and Asia. For 2014, the company has reaffirmed its guidance. However, the intensely competitive environment and downward pressure on prices can have an adverse impact on its profits.

In its quarterly results, Ford’s net income jumped 90% from last year to $3.04 billion, or $0.74 per share. This massive increase, however, was largely due to a tax benefit in Europe as its pretax profit dropped by 24% to $1.28 billion. Despite the drop, the adjusted earnings came in at $0.31 per share, this was better than analyst’s estimate of $0.28 per share.

Ford’s quarterly revenues rose 3.6% from the same quarter last year to $37.6 billion. The revenues were also higher than market’s expectation of $35.17 billion. This growth in revenue was mainly due to the increase .... read full article at GuruFocus