Despite posting of above expectation sales, Ford, on Wednesday, has announced its fourth-quarter results.
Part of reorganization plan, the costs related to pension and layoff showed up in Detroit automaker’s fourth quarter results which not only eroded its profits but also led it to miss earnings estimates.
Also apparent in its results, the company is facing harder time in markets overseas as except North America, where its revenue grew by $1.7 billion, it faced revenue declined in every other region across the globe.
In South America, the automaker survived only in Peru while losing market share in every major market of the region.
Ford saw drop in sales volume in Asia as well as Europe which also hurt its bottom line and exchange rate also remained unfavorable to the company.
A cloudier outlook for 2019 was provided by Ford last week for tariff costs and uncertainty over Brexit. The automaker is also planning to cut thousands of jobs and closing its plants in Europe in order to make profits in the region, as said the company on Jan 10.
For the fourth-quarter, Ford posted a net loss of $116 million down from a net profit of $2.5 billion in the year ago quarter, or a per share net loss of 3 cents from a net profit of 63 cents per share.
Total revenue of $41.8 billion remains slightly higher from same quarter last year revenue of $41.3 billion.
During the quarter and last year, Ford also faced pressures on several other fronts, executives said.
In 2018, Ford paid a total amount of $750 million against tariffs while toll it paid for higher prices of the commodities was $1.1 billion. Last year, unfavorable foreign exchange rates cost $750 million to the company whereas costs related to recalls announced last year in North America ate $775 million, Chief Financial Officer Bob Shanks told analysts on a conference call discussing the results.
