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Ford also faced pressure on a number of other fronts during the quarter and last year, executives said. Tariffs cost the automaker $ 750 million in 2018, while rising commodity prices reduced net income by $ 1.1 billion. Unfavorable foreign exchange rates also had a negative impact of $ 750 million last year and costs of $ 775 million related to last year's recalls in North America, said CFO Bob Shanks , to the badysts.
"It's a difficult year," said CEO Jim Hackett. He noted "obstacles beyond our control and, quite frankly, poor performance of certain parts of the company on which we have taken steps to remedy the situation".
Hackett said Ford had laid the groundwork last year for "a much stronger, more resilient, and more dynamic company, a company we want to tell you can thrive now and in the future."
This is how the company compared its expectations to those of Wall Street, based on Refinitiv's average estimates:
– Adjusted earnings per share of 30 cents versus a forecast of 32 cents per share
– Auto Sector Revenue: $ 38.7 billion vs. a forecast of $ 36.88 billion
Ford withheld a charge of $ 1.18 billion for "exceptional items" excluded from its adjusted earnings. Expenses arise primarily from pension and layoff costs. On an unadjusted basis, Ford lost $ 116 million, or 3 cents per share, in the fourth quarter. It generated a profit of $ 2.52 billion, or 63 cents a share, a year earlier.
The company's total sales reached $ 41.8 billion in the quarter, slightly higher than the $ 41.3 billion reported in the same quarter last year.
"Although 2018 was a difficult year, we have put in place key building blocks to build a more resilient and competitive business model that can thrive in any economic environment," Shanks said in a statement. .
Despite the losses, Ford expects to be able to fully fund its operations and capital requirements in 2019, while maintaining liquidity and liquidity at or above target levels, Shanks said.
On an adjusted basis, the company gained 30 cents per share, which does not meet badysts' expectations of 32 cents per share, according to badysts surveyed by Refinitiv. That was also less than the 39 cents per share reported by the company in the same quarter in 2017.
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