Ford Reports Full-Year 2013 Pre-Tax Profit Of $8.6 Billion, Net Income Of $7.2 Billion

Ford Motor Company has announced its full-year 2013 earnings, representing some of the company’s best years ever. The Blue Oval posted a pre-tax profit of $8.6 billion, an increase of $603 million from 2012, and full-year net income of $7.2 billion, up $1.6 billion over 2012. The results, according to Ford, were driven by the highest automotive pre-tax profit in more than a decade and continued solid profit from Ford Credit.

The highlights:

• Full year 2013 pre-tax profit of $8.6 billion, an increase of $603 million from a year ago, was one of Ford’s best years ever; full year earnings per share of $1.62, an increase of 21 cents per share compared with a year ago
• Full year net income of $7.2 billion, or $1.76 per share, including pre-tax special item charges of $1.6 billion and favorable tax special items of $2.2 billion
• Highest full year Automotive pre-tax profit in more than a decade; record profits in North America and Asia Pacific Africa; about breakeven in South America; lower loss in Europe than last year
• Full year top-line growth with wholesale volume and total company revenue up 12 percent and 10 percent, respectively, compared with a year ago; growth supported by year-over-year market share gains in the U.S., South America and in Asia Pacific Africa, which was driven by record market share in China; higher retail share in Europe
• Ford Credit solidly profitable
• Total company fourth quarter pre-tax profit of $1.3 billion, a decrease of $402 million compared with a year ago; 18th consecutive quarter of profitability; fourth quarter earnings per share of 31 cents, unchanged from 2012
• Fourth quarter net income of $3 billion, or 74 cents per share, an increase of $1.4 billion compared with a year ago, including pre-tax special item charges of $311 million and favorable tax special items of $2.1 billion
• Record positive Automotive operating-related cash flow of $6.1 billion for the full year; fourth quarter Automotive operating-related cash flow of $500 million — the 15th consecutive quarter of positive performance. Ford ended 2013 with Automotive gross cash of $24.8 billion, exceeding debt by $9.1 billion, and a strong liquidity position of $36.2 billion
• Global pension plans funded status improved about $10 billion compared with year-end 2012
• Ford’s outlook for 2014 is unchanged. Ford expects another solid year with total company pre-tax profit to range from $7 billion to $8 billion; Automotive revenue to be about the same as last year; Automotive operating margin to be lower; and Automotive operating-related cash flow to be positive but substantially lower than 2013