NEW YORK, Feb 3 — Ford reported an annual loss yesterday following disappointing fourth-quarter earnings that reflected what it called execution problems that marred performance.
“We should have done much better last year,” said Ford Chief Executive Jim Farley. “We left about US$2 billion (RM8.5 billion) in profits on the table that were within our control, and we’re going to correct that with improved execution and performance.”
Farley did not elaborate on the problems. Automakers have struggled with supply chain problems over the last year in the wake of pandemic-related shortages of semiconductors and other vital parts that have crimped output.
Ford reported profits of US$1.3 billion in the quarter ending December 31, much below the US$12.3 billion in year-ago period boosted by an accounting gain for Ford’s stake in Rivian.
Revenues were up 16.7 per cent to US$44 billion.
The fourth quarter profits — which lagged below the company’s prior projection — pushed Ford to a US$2.0 billion loss for all of 2022, compared with profits of US$17.9 billion in the prior year.
Like rivals such as General Motors, Ford has invested heavily in electric vehicles, unveiling emission-free versions of best selling autos like the F-series pickup truck.
The company has designated its legacy internal combustion autos into its “Ford Blue” division.
The US automaker projected adjusted earnings before interest and taxes of between US$9 and US$11 billion, compared with the 2022 level of US$10.4 billion.
Shares of Ford fell 5.9 per cent to US$13.47 in after-hours trading. — AFP
