Ford Motor (F 11.95, -0.10) is down 0.8% in pre-market after reporting in-line earnings on better than expected revenue.
The automaker reported fourth quarter earnings of $0.39 per share on a 6.9% year-over-year increase in revenue to $38.50 billion, which was ahead of estimates.
Ford's fourth quarter pre-tax profit totaled $1.70 billion, which was down 19.1% year-over-year. Automotive operating margin worsened to 3.7% from 5.7% one year ago. There was an improvement in automotive cash flow, which increased 53.3% year-over-year to $2.30 billion.
Ford's revenue growth was fueled by a 2.5% increase in wholesale volume to 1.749 million.
Looking at the segment breakdown, North America revenue grew 4.3% year-over-year to $24.10 billion with wholesale volume increasing 5.1% to 739,000. The company's market share improved to 13.7% from 13.1% one year ago. Pre-tax profit declined 15.8% to $1.60 billion due to Expedition and Navigator launch effects, higher commodity prices, and higher warranty costs.
South America revenue increased 21.4% to $1.70 billion while wholesales growing 18.9% to 107,000. Regional market share edged up to 8.9% from 8.8%. Segment pre-tax loss totaled $197 million, which was an improvement from a loss of $293 million one year ago.
Europe revenue increased 12.5% year-over-year to $8.10 billion with wholesales rising 6.7% to 416,000. Market share remained unchanged at 7.4% while segment pre-tax profit totaled $56 million, down from $166 million one year ago.
Middle East & Africa revenue declined 11.1% to $900 million while wholesales declined 14.6% to 35,000. Market share ticked down 10 basis points to 4.4% due to an unfavorable mix. The segment reported a pre-tax loss of $70 million, which was a slight improvement from a pre-tax loss of $71 million one year ago.
Asia Pacific revenue increased 11.8% to $3.80 billion even though wholesales declined 7.4% to 452,000. Market share worsened to 3.4% from 3.7% one year ago. The segment reported a pre-tax profit of $5 million, which was down from a profit of $284 million one year ago. The decline was due to lower industry pricing and lower volume in China.
Ford Credit reported a pre-tax profit of $610 million, up 53.3% year-over-year. Strong receivables growth, better financing margin, and lease residual performance fueled the increase.