High non-recurring costs, as well as increasing problems in China and Europe have driven Ford to the end of the year in the red. The bottom line was recorded in the fourth quarter, a loss of 116 million dollars (approximately 102 million Euro), the second-largest US car maker announced after the market close. In the corresponding period in the prior year, the company had reported a profit of $ 2.5 billion.
The adjusted operating profit declined to 28 percent to $ 1.5 billion. Sales increased at least slightly to 41.8 billion dollars. Despite the weak Numbers, the market reaction was left – the stock traded after hours, first slightly in the Plus. Ford had dampened expectations in the past week already.
Plus in North America and nowhere else
The company is proposing, thanks to sought-after SUVs and Pick-ups well in the US home market, where it recently achieved its profits; internationally, but there are difficulties. The European business made in the final quarter and an operating loss of 199 million dollars. In Asia, a loss of 381 million dollars. Also in South America and Africa were in the red.
the balance sheet was Burdened by a 900 million Dollar write-down on pension plans. An additional burden on the customs dispute between the United States and trading partners such as China and the EU, which increases material costs for the manufacturer.
Ford CEO Jim Hackett has already announced a profound restructuring of the group, to reduce the cost massively. Part of the austerity program and drastic cuts are on the.
More on the topic of criticism of the works Council, “The Management responds only if Ford stands in the water up to the neck”
Only around two weeks ago, Ford announced that its European business to set up and delete thousands of Jobs. Of the approximately 50,000 jobs on the continent, a significant number will cease to apply”,” said the Director of European operations Steven Armstrong. In Germany, Ford employs around 24,000 people, the majority of which are in Cologne, Germany, where the US company has its European headquarters. How many Places are there to disappear, exactly, is not yet clear.
one thing is certain: the results for the year as a whole is a little hope. 2018, up from an operating loss of 398 million dollars was in Europe, in the previous year, there was still a significant profit. Even worse, it delivery in Asia – Ford lost 1.1 billion dollars and in South America, which weighed on the balance of the year with 678 million dollars. These problems led to the group’s profit fell a total of 3.7 billion dollars more than halved.