Ford Motor Q4 Profit Increases, Tops Estimate; Backs 2014 Outlook - Quick Facts

(RTTNews) - Ford Motor Co. (F) reported that its fourth-quarter net income attributable to the company increased to $3.039 billion from last year's $1.598 billion with earnings per share improving to $0.74 from $0.40 last year.

Excludes special items and income or loss attributable to non-controlling interests, earnings per share were $0.31, unchanged from last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.28 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter rose to $37.6 billion from $36.3 billion in the prior year quarter. Thirteen analysts had consensus revenue estimate of $35.17 billion for the quarter.

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.

In 2014, Ford is continuing to invest to create innovative products such as the all-new F-150 to ensure Ford has the freshest and most attractive product line-up in the industry. At the same time, Ford is investing to expand its portfolio into new markets, as well as adding capacity, where appropriate, to satisfy increasing demand.

As a result, Ford expects 2014 to be another solid year and a critical next step forward in implementing its One Ford plan to continue delivering profitable growth for all.

For 2014, Ford projects U.S. industry volume, including medium-heavy trucks, to range from 16 million to 17 million units. In Europe, the company expects a range of 13.5 million to 14.5 million units. In China, Ford expects volume to range from 22.5 million to 24.5 million units.

In the fourth quarter of 2013, Ford Credit's pre-tax profit was $368 million, a decrease of $46 million from a year earlier. The decrease primarily reflects unfavorable residual performance related to lower auction values and lower financing margin, both in North America, as well as credit loss reserve changes; higher volume was a partial offset.

Ford Credit reported fourth quarter net income of $568 million, an increase of $300 million from a year earlier. The increase is primarily explained by a reduction in its tax liability resulting from favorable one-time tax items recorded in the quarter.

Ford Credit expects 2014 pre-tax profit about equal to 2013. Ford Credit also expects managed receivables at year- end of about $110 billion, managed leverage to continue in the range of 8:1 to 9:1 and distributions to its parent of about $250 million.