Ford Falls Short in 2019

By Staff Writer February 07, 2020
 Jim Hackett, Ford president and chief executive officer sees a bright future for Ford Jim Hackett, Ford president and chief executive officer sees a bright future for Ford

 

Ford saw strong overseas performance, but also a $1.7 billion net loss in Q4.

Fourth quarter adjusted free cash flow was $498 million, down 67 percent. The company reported a Q4 net loss of $1.7 billion, or negative 42 cents per share, which includes a previously disclosed $2.2 billion pension and OPEB remeasurement loss.

“Financially, the company’s 2019 performance was short of our original expectations,” said Jim Hackett, Ford president and chief executive officer, “mostly because our operational execution – which we usually do very well – wasn’t nearly good enough. We recognize, take accountability for and have made changes because of this.

“We made great strategic progress this past year with a fundamental redesign of Ford that is setting us up to compete and win in this emerging era of Smart Vehicles for a Smart World – with great products, services and long-term value.”

Adjusted earnings before interest and taxes (EBIT) were $485 million, down 67 percent, with improved results in China and Europe more than offset by a decline in North America. Revenue was $39.7 billion, down 5 percent. Ford’s Automotive EBIT for the quarter was $215 million, 81 percent lower. Gains in net pricing and product mix, particularly in North America, were more than offset by lower launch-related volumes; higher costs for new products; unfavorable currency exchange; and UAW contract-related costs.

For full-year 2019, Ford’s adjusted free cash flow was $2.8 billion, flat compared to 2018. Revenue was $155.9 billion, down 3 percent. Adjusted EBIT was $6.4 billion and adjusted EPS was $1.19. Ford Credit had an exceptional year, posting its best results in nine years, with $3 billion in earnings before taxes.

Among 2019 strategic highlights were the November reveal of the Mustang Mach-E, a zero-emissions battery-electric vehicle that will be digitally connected, enabling constant improvement through real-time over-the-air updates.

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Last modified on Thursday, 13 February 2020 14:49

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