Ford Issues Optimistic Performance Outlook for This Year... But Market Says 'Not So Sure'

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Ford Motor Company has expressed an optimistic earnings outlook, stating that the turmoil in the automotive industry caused by COVID-19 is expected to stabilize somewhat this year. However, the market showed disappointment, saying that Ford's reported earnings for last year fell short of expectations.

According to the Wall Street Journal (WSJ) and others on the 3rd (local time), Ford announced a net profit of $17.9 billion (approximately 21.5 trillion KRW) for the entire last year. It forecasted that global vehicle sales this year will increase by 10-15% compared to last year, and that pre-tax net income excluding one-time gains will reach $11.5 billion to $12.5 billion.

WSJ explained that of Ford's reported net profit for last year, $11 billion was due to special items that occurred in the fourth quarter. In particular, it was revealed that $8.2 billion in paper profits came from investment gains in the electric vehicle manufacturer Rivian.

Revenue in the fourth quarter was $35.3 billion, slightly below the market estimate of $35.5 billion. During this period, Ford's operating profit from its North American business increased by 68% year-on-year to $1.8 billion, but losses occurred in China, Europe, and other regions, CNBC reported.

Despite Ford's optimistic outlook, the market reacted with disappointment as the stock price fell. In after-hours trading, Ford's stock price dropped more than 4%.

This content was produced with the assistance of AI translation services.