Good news out of Dearborn today, as Ford announced $3 billion in profit for the last quarter of 2013, a 90-percent increase over the same period of 2012. Net income for all of last year, meanwhile, jumped to $7.2 billion from $5.7 billion in 2012, while pre-tax profits sat at a decade-topping $6.9 billion for all of 2013.
The results of the substantial profit increases are bigger profit-sharing checks for UAW employees. How big? A record $8,800 on average for 47,000 UAW workers, making 2013 the biggest year for profit sharing in Ford history. In total, $414 million will be paid as part of the profit-sharing scheme.
Now, it should be pointed out that a fair portion of Ford's Q4 profits were due to tax benefits, totaling $2.1 billion, according to Automotive News. Total profits would have also been higher, had there not been a significant recall on the Escape, as well as plant issues in South America.
Total vehicle sales, meanwhile, were up to 2,485,236 units in the US alone, representing an 11-percent increase. Not every region was as rosy as the US market, though. European losses still accounted for $1.6 billion in Q4 alone, although that number is eight percent lower than last year. There were also $126 million in losses in South America, down from 2012's $145 million profit. According to AN, this can be blamed on decreased output from factories in Brazil and Venezuela.
Still, the overall news out of Ford is good. And with a planned 23 launches in 2014, we'd expect the next few years to only get better for Ford. Scroll down for the (very) lengthy press release from Ford.Permalink | Email this | Comments