By on January 28, 2016

2016 NAIAS Ford Stand

Ford announced Thursday that it had earned a record pre-tax profit of $10.8 billion for 2015 — including $2 billion in the fourth quarter — bolstered by pickup sales in the U.S. and strong growth in China.

The record-setting year for the automaker wasn’t much of a surprise — second- and third-quarter results set records along the way — but Ford’s ability to finally turn a profit in Europe may be the most unexpected news. The automaker had lost money in Europe since 2011.

Latin America, notably Brazil, will continue to be a sore spot for Ford and other automakers. Ford said Thursday it expects to lose more money there in 2016 than the $832 million it lost there in 2015.

Ford’s profitability for 2015 finished at 10.2 percent in North America — way up from its 9.5 percent expectation set out by CEO Mark Shields in October. Overall, Ford achieved automotive operating margins of 6.8 percent.

“We promised a breakthrough year in 2015, and we delivered. In 2016, we will continue to build on our strengths and accelerate our pace of progress even further, while transforming Ford into both an auto and a mobility company and creating value for all of our stakeholders,” Shields said in a statement.

So far, investors haven’t rewarded Ford in the market. Shares of the automaker are trading at a 52-week low, and investors remain skittish that the car company can sustain an operating margin of over 10 percent without increasing production and slashing prices to meet volume guidance and sales targets.

For Ford, the good news was that China delivered beyond what many analysts expected. The region’s profits for the automaker soared 29 percent over last year and Ford expects the region to grow to help backfill any potential hiccups in its wheelhouse NAFTA region.

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20 Comments on “Ford Fueled Record Profits in 2015 With Truck Sales, China Surge...”


  • avatar
    VoGo

    It’s rare to see a stable company like Ford with a P/E below 10. I suppose the market is factoring a downturn into the market for 2017.

    • 0 avatar
      dwford

      The entire world economy is questionable, all built on a house of cards of government borrowing and central bank money printing. Nothing was truly fixed from the 2008 Great Recession, just pushed down the road. So, yes, the market is factoring that in. The Dow is down over 2000 points in the last 6 months.

      At least Ford has it’s financial house in order for any future downturn.

      • 0 avatar
        Big Al from Oz

        dwford,
        It seems even Ford’s profits can be contributed to these government borrowings. May forget that Ford received a $28 billion government loan with special conditions.

      • 0 avatar
        tresmonos

        The S&P has a little more to fall, probably 1700’s to 1600’s maximum. If that is the case, there has been steady growth since 2003 or thereabouts. There isn’t anything to fear. (even though I took 60% of my retirement funds to cash at the end of December)

    • 0 avatar
      tresmonos

      I think Wallstreet doesn’t like Fields, the fact that the Ford family isn’t buying back stock and that Ford has double the debt as GM.

  • avatar
    LeeK

    From previous commentary by TTAC’s Best & Brightest:

    “People distrust aluminum trucks, this a huge mistake by Ford”

    “All those Eco-boost engines will destroy Ford”

    “Ford’s strategy of aluminum F-150s is going to undermine the company”

    And so on…

    • 0 avatar
      maxxcool7421

      Indeed ;)

    • 0 avatar
      heavy handle

      That kind of talk is mostly limited to the Australian Auxiliaries who work the B&B night shift.

    • 0 avatar
      Big Al from Oz

      Welcome to TTAC LeeK, or whatever handle you also use. It appears TTAC doesn’t have a truly secure system.

      We will see.

      How much of this profit is attributable to the aluminium pickups? Can you give me a breakdown of how Ford made it’s profits?

      I doubt it.

      How much money did Ford make in it’s overseas operations?

      How much money did the previous model F-150s give Ford this year.

      And, more importantly how much profit was made from the SuperDuty range of pickups? I’d bet a lot more than those aluminium wonder trux.

      How much creative accounting is there in these figures?

      Ford is making a profit, but I do believe you attributing these profits to the aluminium F-150 is rather naive.

      Our financial papers actually are placing much more in Ford’s overseas operatons for these profits.

      We will see how good Ford’s profits are from the aluminium pickups in 12 to 24 months. There’s too much overlap at the moment.

      • 0 avatar
        tresmonos

        SuperDuty: A lot
        Escape: Possibly more

        Crazy, huh?

        • 0 avatar
          bball40dtw

          People are set in their ways and aren’t going to believe you. They love those Morgan Stanley numbers from half a decade ago.

          • 0 avatar
            tresmonos

            lol, you and I both know it. I wonder where they would have built that had LAP been shuttered?

          • 0 avatar
            bball40dtw

            If they would have closed LAP and not left another plant open, they would be [email protected] Ford already can’t build enough crossovers. Management can’t order Explorers for their next lease because Ford doesn’t want $45K Explorer Sports going anywhere but retail.

          • 0 avatar
            tresmonos

            makes you wonder if all that vibrato was just to shake the Kentucky democratic money tree, haha. I think they were waiting for KCAP to wind down the last generation Escape.

          • 0 avatar
            bball40dtw

            Well the people at LAP got lucky. They didn’t have product for two model years!

  • avatar
    Acd

    So how much did they make? This isn’t a very informative article.

  • avatar
    Big Al from Oz

    Here is an interesting article on where Ford might be making lots of it’s current profit.

    And, it ain’t from the aluminium wonder trux. I thought this is The Truth About Cars???

    If one looks at the graph in the link I’ve presented one will see that motor vehicle sales in China have doubled since the early part of 2015. Ford and GM have made massive increases in total numbers as well.

    Here’s a cut and paste with the link;

    “Car sales give us a glimpse. They collapsed early last year and touched bottom at 1.27 million in July. Sales have been rising every month since, surging to a record 2.44 million in December. New registrations were up by 37 per cent for GM, and 36 per cent for Ford.”

    Read more: http://www.smh.com.au/business/china/hysteria-over-chinas-economy-has-become-ridiculous-20160128-gmgjja.html#ixzz3yd1uDueZ
    Follow us: @smh on Twitter | sydneymorningherald on Facebook

    • 0 avatar
      bball40dtw

      Ford makes waaaaaaaaaaaaaaaay more money in North America than China. Like, billions more. The profit isn’t coming from China. Out of that $10.8 billion, $9.3 billion of it was made in North America. Trucks, SUVs, and crossovers in the US and Canada. That’s what’s making money.


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