Ford Motors 4QFY15 Financial Results Beat Analyst’s Forecast

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The automaker managed to outperform all the estimations of the analysts for the fourth quarter; safe to say it had an incredible 2015 – at least in Europe, Asian and North America.

Earnings report of Ford Motors Company for the fourth quarter of fiscal year 2015 was announced on January 28, 2015 – turns out the quarterly results are way better than the expectations of the automaker as well as the expectations of the analyst at Wall Street.

During the fourth quarter, the automaker managed to generate a hefty amount of $1.9 billion as net income, bringing the total net income for the year to $7.4 billion. The Wall Street analysts had estimated the earnings per share of Ford will be $0.46 where it managed to outperform their estimations and reported earnings of $0.58 per share.

Secondly, it beat the revenue expectations of the financial analysts as well, since they predicted that the company will see the revenue jump to $36.32 billion while it reported revenue of $40.3 billion. Before taxes, the automobile organization earned as much as $2.03 billion in North America. Across the market, Ford is one of the companies that had an outstanding year.

Mark Fields, the chief executive officer at Ford Motors stated that this earnings report is a reflection of all the big new products that made its debut back in 2014 – for example, the Edge and Explorer SUV’s have started to report a hefty amount in sales since the past few months. He added that the operating margin in the region for the year was about 10.2% while for the quarter it was reported to be 8.2%.

It was partially predicted that the auto-maker will post outstanding financial results for the fourth quarter, mainly because Mark stated earlier in January that the organizations was planning on modifying its pension reporting pattern – because of this change, the company was expected to gain as much as $1.5 billion before taxes.

Additionally, in the European market the Detroit based giant has made its recovery as it succeeded to earn $131 million before taxes for the quarter and for the entire year earned $259 million. A year ago, during the same period its market share in the European region was 7% and now it is at 7.6% – which is the first profitable year in the region since 2011. The reason for this recovery is the strong product line and new products provided by the automobile business which helped it gain new customers.

Subsequently, Europe is not the only region that performed well this quarter; the Asia Pacific unit did fairly well too – as it reported earnings of $444 million   which brought it to a total of $765 million for the year. In the Asian region, the Edge SUV has become a hot seller and a major factor for the unit’s good financial results.

With all the good results that the company has reported from all across the globe, South America was the only region that has a tough time reporting profits. The unit incurred a loss of $187 million during the fourth quarter. Due to the slow growth and fall sales of the industry, Ford witnessed this loss. For the upcoming fiscal year, the organization is planning on beating the results of the previous year – for the North American region, its expecting to be close to the current year’s results along with good results in Europe as well as Asia.


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