Ford Motor beats by $0.03, reports revs in-line; reaffirms FY14 guidance
Reports Q4 (Dec) earnings of $0.31 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.28; revenues rose 3% year/year to $35.6 bln vs the $35.27 bln consensus.
Total Automotive fourth quarter wholesale volume and revenue both increased from a year ago. The higher volume primarily reflects higher industry volumes in all regions and higher market shares in North America and Asia Pacific Africa. Lower dealer stock increases this year compared with a year ago were a partial offset. The higher net revenue reflects favorable mix, higher net pricing and the volume increase. Operating margin and pre-tax profit were lower than a year ago.
Ford Credit's fourth quarter pre-tax profit of $368 million decreased $46 million from a year ago, primarily reflecting unfavorable residual performance related to lower auction values and lower financing margin, both in North America, as well as credit loss reserve changes. These factors were partially offset by higher volume.
Ford's outlook for 2014 is unchanged (given on December 18, below ests). Ford expects another solid year with total co pre-tax profit to range from $7 billion to $8 billion; Automotive revenue to be about the same as last year; Automotive operating margin to be lower; and Automotive operating-related cash flow to be positive but substantially lower than 2013