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Ford Motor Company Earns Record $10.8 Billion Pre-Tax Profit in 2015

Published on www.automobilemag.com

January 28, 2016
Mark Fields With Ford Logo

Ford Motor Company sold 6.6 million cars and trucks globally in 2015, for net revenue of $149.6 billion, up $5.5 billion over 2014. Its pre-tax profit of $10.8 billion was up $3.5 billion over Fiscal Year ’14, with net income of $7.4 billion up from $1.3 billion the year earlier.
Like the rest of the automotive world, the propensity of that financial success came from compact and midsize crossover/utility vehicles and large pickup trucks, the latter of which has contributed as much as 90 percent of profit for the world’s fourth-largest automaker in recent years.
2016 Ford F 150 Limited Front Three Quarter 02

While Ford expects less industry growth in 2016 than the 2015 results, “we feel there’s some upside opportunity to grow F-150 volume this year,” president and CEO Mark Fields (pictured above) said Thursday, because production of the new aluminum-bodied truck has fully ramped up. Like Fiat Chrysler, Ford sees continued growth in the crossovers/SUVs and trucks, though Ford is not talking about phasing out compact and midsize sedan production, as FCA CEO Sergio Marchionne did Wednesday.
Ford says all its business units were profitable in 2015, except South America. The European market has fully recovered, where the company reported three consecutive quarterly profits. Ford Motor Company reported fourth-quarter net income of $1.9 billion, compared with a $2.5 billion loss in the fourth quarter of 2014.
The company claims a 6.9-percent global market share, unchanged from 2014. U.S. market share fell 0.1 points, to 14.2 percent. Ford’s record profit in 2015 contrasts with Fiat Chrysler’s results, which was 377 million euros, or $410 million U.S., down from $687 million the previous year.
2017 Ford Escape SE Front Three Quarters

Fiat Chrysler posted net revenues of $123 billion from sales of 4.61 million vehicles in 2015.
Ford’s fourth-quarter earnings per share of 58 cents topped analysts’ consensus prediction of 50 cents per share, though the company’s common stock was off 28 cents per share to $11.57 per share by late Thursday morning, from fear that U.S. auto sales will level off in 2016. Based on 2015 volume of 17.8 million in the U.S., including heavy trucks, Ford predicts industry sales of 17.5-18.5 million here in ’16.
General Motors reports its fourth-quarter and 2015 financial results on Wednesday, February 3.