Ford Records a Very Good Year

For the year, Ford reported EPS of $1.62 on revenues of $146.9 billion compared with 2012 totals of $1.41 in EPS and $133.6 billion in revenues. The consensus estimates for 2013 called for EPS of $1.60 on revenues of $138.99 billion.

Ford issued 2014 guidance in December that included a drop in profits from an expected $8.5 billion in 2013 to a range of $7 billion to $8 billion in 2014. The company reaffirmed that guidance today, as well as its previously announced revenue, operating margin and operating cash flow guidance.

The company also said that it would make record-level profit sharing payments to approximately 47,000 eligible U.S. hourly employees based on 2013 pre-tax income of $8.8 billion. An annual profit-sharing payment of about $8,800 will be paid to eligible employees in accordance with the contract between Ford and the United Autoworkers union.

The company’s CEO said:

We are well positioned for another solid year in 2014, as we continue our plan to serve customers in all markets around the world with a full family of vehicles — small, medium and large; cars, utilities and trucks — with the very best quality, fuel efficiency, safety, smart design and value.

Ford’s North American operating margin fell 0.5% to 9.9% for 2013, and fourth-quarter margin fell 0.8% to 7.6%.

In South America, Ford’s operating margin for the quarter fell to a negative 4.7%, from 4.8% a year ago, and for the full year the company’s margin fell to a negative 0.3%.

Operating margins also remained negative in Europe, but revenues rose both for the quarter and for the year. Unit sales were down 9,000 for the quarter but up 7,000 for the year.

The company improved its market share in China to 4.4%, as expected. Ford still trails well behind General Motors Co. (NYSE: GM) and its nearly 14% market share in China. For GM, which is scheduled to report quarterly results on February 6, China accounts for nearly 30% of global annual sales. So Ford is not likely to gain ground easily in the Middle Kingdom.

Ford shares were up about 1.5% in premarket trading at $15.95 and opened at about that level Tuesday. The 52-week range is $12.10 to $18.02. Thomson Reuters had a consensus analyst price target of around $18.20 before this report.