Ford_News
01-27-2012, 09:11 AM
Filed under: Europe (http://www.autoblog.com/category/euro/), Ford (http://www.autoblog.com/category/ford/), Earnings/Financials (http://www.autoblog.com/category/earnings-financials/)
http://www.blogcdn.com/www.autoblog.com/media/2012/01/alan-mulally-of-ford-with-reporters.jpg (http://www.bloomberg.com/news/2012-01-27/ford-falls-short-of-estimates-while-reporting-biggest-profit-in-14-years.html)
Ford (http://www.autoblog.com/ford) has announced the company's single largest profit since 1998, thanks in part to a one-time tax (http://www.autoblog.com/tag/tax) gain. The company drew in a net income of $13.6 billion last quarter and the news marked the automaker's 11th consecutive profitable quarter. For perspective, Ford made $190 million in 2010. The company's net income was bolstered by the fact that Ford eliminated a valuation allowance against deferred tax benefits. The company created the valuation allowance in 2006 when it began reporting operating losses. Analysts reportedly see the elimination as a sign that the manufacturer expects to be profitable in coming years.
The company made $8.8 billion in profit in 2011, or $1.51 a share. That's an increase of $463 million over 2010. Even so, the company's net income missed analysts' estimates thanks in part to higher commodity costs, currency fluctuations and flooding in Thailand. The automaker spent $100 million more in commodities like steel than it projected. Those facts, combined with a deteriorating European (http://www.autoblog.com/tag/europe) market, helped Ford miss analyst estimates by 5 cents per share.Ford reports biggest profits since '98, still fails to meet estimates (http://www.autoblog.com/2012/01/27/ford-reports-biggest-profits-since-98-still-fails-to-meet-estim/) originally appeared on Autoblog (http://www.autoblog.com) on Fri, 27 Jan 2012 11:02:00 EST. Please see our terms for use of feeds (http://www.weblogsinc.com/feed-terms/).
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Ford (http://www.autoblog.com/ford) has announced the company's single largest profit since 1998, thanks in part to a one-time tax (http://www.autoblog.com/tag/tax) gain. The company drew in a net income of $13.6 billion last quarter and the news marked the automaker's 11th consecutive profitable quarter. For perspective, Ford made $190 million in 2010. The company's net income was bolstered by the fact that Ford eliminated a valuation allowance against deferred tax benefits. The company created the valuation allowance in 2006 when it began reporting operating losses. Analysts reportedly see the elimination as a sign that the manufacturer expects to be profitable in coming years.
The company made $8.8 billion in profit in 2011, or $1.51 a share. That's an increase of $463 million over 2010. Even so, the company's net income missed analysts' estimates thanks in part to higher commodity costs, currency fluctuations and flooding in Thailand. The automaker spent $100 million more in commodities like steel than it projected. Those facts, combined with a deteriorating European (http://www.autoblog.com/tag/europe) market, helped Ford miss analyst estimates by 5 cents per share.Ford reports biggest profits since '98, still fails to meet estimates (http://www.autoblog.com/2012/01/27/ford-reports-biggest-profits-since-98-still-fails-to-meet-estim/) originally appeared on Autoblog (http://www.autoblog.com) on Fri, 27 Jan 2012 11:02:00 EST. Please see our terms for use of feeds (http://www.weblogsinc.com/feed-terms/).
Permalink (http://www.autoblog.com/2012/01/27/ford-reports-biggest-profits-since-98-still-fails-to-meet-estim/) | Email this (http://www.autoblog.com/forward/20158349/) | Comments (http://www.autoblog.com/2012/01/27/ford-reports-biggest-profits-since-98-still-fails-to-meet-estim/#comments)
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