Ford Motor Company (NYSE: F) reported a net income of US$2.4 billion in 4Q17 and US$7.6 billion for the whole year of 2017. This contrasts with the US$732 million net losses the company reported in 4Q16 and the US$4.6 billion net income in 2016.
Despite an increase in average prices in the US of approximately US$1,300 – which Ford reports to be almost twice the industry’s average – and a decrease in overall sales, the company delivered strong economic results for 2017. Globally, the company achieved sales of 6.6 million units throughout the year, down 1 percent compared to the 6.65 million reported in 2016. This led to a 7 percent global market share and brought Ford US$145.7 billion of its total US$156.8 billion in revenue and US$4.8 billion in annual net income.
Another US$2.9 billion in Ford Motor Company’s net income for the year came from its financial services managed by Ford Credit. Meanwhile, the company reported losses of US$210 million under special items and adjustments.
North America was Ford’s most successful venture with 2.97 million units sold during 2017. Sales increased 5 percent in the region according to the company, mainly driven by US sales, particularly in SUVs. Although Europe and Asia reported similar sales numbers, Europe was the clear second-most important contributor to the company’s results with US$29.7 billion in revenue. Asia, in comparison, generated US$14.1 billion.
For 2018, the company has mixed expectations due to a positive outlook on sales but negative forecasts on elements such as the strength of key currencies and an increase in commodity prices including steel and aluminum. To counter these obstacles, the company has planned a robust product launch plan for 2018 with 23 new vehicles projected globally. Overall, the company expects revenue to be flat or slightly higher than in 2017 with positive operating cash flow, though lower than in 2017.
The company also sees smart vehicles as a key point in its future development and a critical change in its 2017 operations. “In 2017, we made tremendous progress in laying the foundation for our strategy – smart vehicles for a smart world – from accelerating our connected vehicles plans to expanding our AV and EV work,” said Jim Hackett, President and CEO of Ford Motor Company in the company’s earnings presentation. “As we move into 2018, we are intensely focused on improving the operational fitness of our business to deliver strong results while continuing to build toward our vision of the future.”