|
Ford profits up 82 percent
|
 |
January 29, 1997: 3:15 p.m. ET
No. 2 U.S. automaker sees strong 1997 on cost-cutting, new initiatives
|
NEW YORK (CNNfn) - Ford Motor Co. on Wednesday reported that fourth-quarter profits rose 82 percent to $1.2 billion as impressive results from financial services overshadowed auto sales.
The nation's No. 2 automaker said fourth-quarter revenues improved from $34.6 billion to $38.8 billion. Revenues for the year climbed from $137 billion to $147 billion, while profits rose 7 percent to $4.45 billion.
"It's a good quarter," John Devine, Ford's chief financial officer, told CNNfn. "Good progress. We're not at a level yet in the automotive business that we're pleased with, so we have a lot of work to do. But we had another record quarter in financial services and a record year."
Ford's financial services group accounted for $2.8 billion of the company's annual earnings. Earnings from worldwide automotive operations slid to $1.6 billion from $2 billion in 1995. The company blamed some of the sluggish performance in auto sales on performances in Europe and a startup venture in Brazil. (160K WAV) or (160K AIFF)
Ford lost $238 million for the quarter overseas, mainly the result of losses in Europe and South America. The company has launched a series of cost-cutting measures in Europe and predicted that losses will narrow in Brazil and Argentina.
Devine said Ford will attempt to keep 1997 costs below the 1996 levels in a move that could compensate for a slowdown in revenues. He said he does not see tremendous growth in the immediate future for the auto industry in general. Ford will have to cultivate its own markets to improve this year's financial performance.
Asked about changes that could affect the company in the coming years, Devine said Ford is paying careful attention to Republic Industries chief Wayne Huizenga's plans of launching a chain of used car superstores.
While standing by the traditional small business owner who operates used car lots, Devine said Ford is exploring opportunities to work with Huizenga and has established a framework agreement with the Florida-based mogul.
"The private entrepreneur who is the heart of our system today will continue in the future," Devine said. "I don't think that's going to change. But there is obviously going to be a major change in a number of the parts of distribution."
|
|
|
|
|
|
Ford Motor home page
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
