Ford Posts Net Loss in Q4 2019

On Tuesday U.S based second largest automaker Ford Motor Co (F) reported its fourth quarter results for the period ended December 31, 2019. In the quarter Ford posted a gross loss of $2.2 billion attributing the loss partly to rising pension costs for its employees.

After relevant deductions were made net loss for the quarter stood at $1.7 billion or 42 cents per share, a loss way above than the $100 million net loss the automaker reported a similar period last year.

Revenue in the quarter declined to $39.7 billion signifying a 5% drop, however, this was much higher than the $36.5 billion estimated by Wall Street.

In the fourth quarter, Ford generated a loss of $207 million in China, further increasing total operation losses in China to $771 million for the year 2019.

In the same quarter Ford’s market share in China dropped to 2% considering it had a 2.3% market share in China in the fourth quarter of 2018.

Ford’s sales in China also dropped by 15% in the fourth quarter, further pushing total drop in sales to 26% in 2019.

Back in December, Ford said it was expecting net operation losses for the year, moreover, it would trim those losses to half in 2020.

Ford’s Chief Financial Officer Tim Stone, acknowledged 2019 was a bumpy year for the firm but remained optimistic they will turn the situation in the near future.

“While our 2019 results were not OK, I’m confident we have abundant opportunities to improve our operational execution, drive growth, strengthen our financial results, including cash flow and in the process, earn the confidence of our stakeholders. We will achieve our potential and optimize long term value through timely decisive actions to strengthen our business and execute on our long-term vision,” said Stone.

Moreover, Stone added the company expects operating earnings of between 94 cents to $1.20 per share in 2020, values lower than the $1.26 estimated by analysts.