#Financials

It is a breath of fresh air to have someone like Jim Farley at the helm of an automaker. The man brings a bracing level of candor to a world generally filled with sanitized PR statements and corporate double-speak. In a candid call with investors, the CEO lamented about how Ford has been “number one in recalls” and the need “to improve product quality”.

I got a push alert to my phone over the weekend – CNN was saying Tesla had a secret to its profits. Intrigued, I clicked, but before the article could even load it dawned on me.

CNN was going to point out that Tesla made most of its money not from sales but from regulatory credits.

Despite posting a 7 percent increase in revenue and a net income of $2.4 billion (up from a $800 million loss a year ago), Ford’s fourth-quarter 2017 earnings missed analyst expectations. Blame a few key factors.

First, Ford faced an increase in commodity prices, ratcheting up the cost of steel and aluminum. Add to that increased warranty costs, unpleasant foreign exchange rates, and sinking sales in China, and the company’s pretax profit fell 19 percent from a year ago, hitting $1.7 billion.

As the company seeks to convince investors to put its trust in the automaker’s vision, Ford delivered earnings of 39 cents per share, not the 42 cents analysts projected.

Fiat Chrysler Automobiles CEO Sergio Marchionne on Wednesday said the automaker would rely more heavily on profitable Jeeps and Rams in North America and Europe to help its business remain profitable in other sagging areas and regions.

“We are not of the view that this industry is facing an impending demise,” Marchionne said before announcing FCA’s adjusted earnings of $1.78 billion in the fourth quarter.

Marchionne and CFO Richard Palmer said Jeep’s success in North America and Europe led the company last year and would be the “bedrock” for the automaker’s future. The automaker laid out specific plans to bring forward a Jeep pickup and Wagoneer, and let wither less-profitable models such as the Chrysler 200 and Dodge Dart.

Ford Motor Company said Tuesday that the company posted its most profitable third quarter driven by pickup sales in North America.

According to Ford CEO Mark Fields, F-150 transaction prices were up $2,800 for the third quarter in 2015 compared to the same period last year and dealers were reporting full stocks of trucks, up from this year’s shortage.

Fields stopped short of saying the new F-150 was more profitable than the outgoing generation, but said the truck was contributing — not taking away from — the company’s record profit. Representatives said high-margin cars such as the Edge, Mustang and Explorer also contributed to pre-tax profit of $2.7 billion last quarter.

Waiting for Godot-san

In my report from Toyota’s quarterly results, there was one thing I forgot to mention decided to keep for later. As long as I have been going to these things, and it has been a while, the first question has always been given to a Nikkei reporter. Old Japanese custom, like AP (and recently Reuters) at the Whitehouse. As long as I have been going to these things, the Nikkei reporter always asked when Toyota wants to make a profit and pay taxes at home. That kabuki dance is disguised as “when can we expect positive results on an unconsolidated basis?” The folks in the room need no translation, they roll their eyes and pens, or check their Brakkubely. That’s a Blackberry for you. This time, it was different.

Here we go. Are you sitting down?

Presenting its Q3 financials in Tokyo today, Toyota delivered much higher profits and much higher sales while promising even higher profits at pretty much flat sales for the future. With a man on his left who looked like an accountant, and who had a big accountant’s briefcase on his knee, ready to pull whatever document his master needs, and a very quiet Shigeru Hayakawa on his right, Toyota Senior Managing Officer Takahiko Ijichi did forecast a net profit of 860 billion yen ($9.3 billion) for the fiscal year ending on March 31, 2013 up from the previously forecasted 780 billion yen. He also signaled a pause in Toyota’s rapid expansion:

Ford announced a second-quarter net profit of $1 billion, which was better than analysts expected. That’s the good news. The bad news is that Ford expects to lose more than $1 billion in Europe this year. Earlier this year, Ford forecast an annual loss of between $500 million and $600 million, Reuters says.

Toyota today announced financial results for the quarter ended June 30, 2011. It was the first full quarter after the March 11 earthquake and tsunami which severely affected production and sales at home and abroad. The results reflect this.

When GM went on the begging tour around Europe, they had dire projections. They expected a loss of $1.7b or thereabouts for 2009. Can’t have such bad news before an IPO. And imagine the elation when the big bottom line was drawn under the books of the 2009 fiscal – and Opel had lost only $600m. Who dunnit?