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Ford Reports Net Income of $7.2 Billion in 2013, up from 2012

Motor Trend logo Motor Trend 1/28/2014 Erick Ayapana

The Ford Motor Company had another strong year posting a net income of $7.2 billion in 2013, an increase from the $5.7 billion it made in 2012. The automaker points to strong profits in North America and Asia Pacific Africa, as well as improved performance from its European operations.

Ford closed out 2013 with a strong fourth quarter, posting a net income of $3 billion, which was 1.4 billion more than it made during the same period a year ago.

Alan-Mulally-2013-Ford-F150© Provided by MotorTrend Alan-Mulally-2013-Ford-F150 “The company had an outstanding year, earning a profit that was higher than last year’s strong performance and one of our best years ever,” Ford CFO Bob Shanks noted in a statement. “Our results were driven by record profits in North America and Asia Pacific Africa, improved results in Europe and another solid year from Ford Credit.”

2014 Ford Fiesta ST

In Europe, where Ford continues to restructure its operations, the automaker reported a pre-tax loss of $1.6 billion, which is a $144 million-improvement compared to 2012. Ford also lost money in South America to the tune of $34 million, despite making a $213 million-profit in 2012. The automaker cites issues with inflation, fluctuating currency, and pricing for the loss in profit in that region.

alan-mulally-and-bill-ford-3© Provided by MotorTrend alan-mulally-and-bill-ford-3 There’s better news in the Asia Pacific Africa region, where Ford earned a pre-tax profit of $415 million, compared to $77 million the prior year. Ford continues to aggressively increase its product portfolio in that region and has made market share gains in a number of countries including China.

“We had an outstanding year in 2013, demonstrating that our One Ford plan continues to drive solid results and profitable growth for all,” Ford CEO Alan Mulally said in a statement. “We are well positioned for another solid year in 2014.”

Ford’s financial outlook for 2014, however, is mixed. While Ford expects to breakeven in South America, it predicts that profits in North America will fall a bit due to a decrease in supply of outgoing models, a “more competitive pricing environment” for small and midsize cars, and costs attributed to new product launches like the 2015 F-150.

Source: Ford

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