Ford Motor Company (NYSE: F) reported discouraging end-of-year results with a total income of US$4.6 billion, which represented a decrease of US$2.8 billion compared to the previous year. The main reason for these lower results was a pre-tax pension remeasurement in 4Q16 of US$3 billion.
The good news is that despite these figures, the company achieved an adjusted pre-tax profit of US$10.4 billion by the end of the year, only second to the record figures reported in 2015. “This year, we’re focused on building on our strengths, transforming underperforming parts of our business and investing in the emerging opportunities that will provide even more profitable growth in the future,” says Mark Fields, President and CEO of Ford Motor Company.
North America was the best-operating region for the company with US$9 billion of pre-tax profit and a market share of 13.9 percent, followed by Europe with US$1.2 billion and Asia Pacific with US$627 million. Meanwhile, South America and the Middle East & Africa regions reported losses of US$1.1 billion and US$302 million respectively.
Among the main risk factors that the company forecasts for next year’s operations, Ford highlights lower demand in the US, Europe and China related to economic and geopolitical factors, an increase in volatility of fuel prices and fluctuations in currency exchange rates.