Ford Posts $1.9 Billion Profit

By Christina Rogers 

Ford Motor Co. reported fourth-quarter net income of $1.9 billion, or 47 cents a share, swinging from a loss in the prior-year period as strength in its core North America market and a return to profitability in Europe helped offset economic turbulence in the emerging markets.

Revenue for the last quarter of 2015 climbed 12% to $40.3 billion, lifted by rising sales in three of the company's five global regions. Operating profit for the just-ended quarter was $2.6 billion, double the $1.3 billion earned in the same period in 2014. Adjusted earnings per share of 58 cents solidly beat Wall Street expectations for 51 cents a share.

The company posted a record full-year operating profit of $10.8 billion, up 48% from the prior year and beating its original 2015 financial guidance.

Ford's North America operations, lifted by record U.S. industry sales and strong demand for its lucrative pickup truck, posted a fourth-quarter operating profit of $2 billion, up from $1.6 billion in the fourth quarter a year ago, and a margin of 8.2%--several percentage points lower than the record 12%-plus margin in the second and third quarter.

Ford Chief Financial Officer Bob Shanks said last fall he expects fourth-quarter profitability will be negatively affected by higher seasonal costs and a $600 million charge related to a new labor deal.

Write to Christina Rogers at [e-mail]

(END) Dow Jones Newswires

January 28, 2016 07:22 ET (12:22 GMT)

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