Ford has reported a mixed quarter and $ 29 billion in big investment plans.

Ford’s fourth quarter was a loss for the automaker, but the company has high expectations for its new Mustang Mach-E EV, F-150 and Transit vans. Ford plans to make huge investments in its electric and autonomous vehicles.

Shares of Ford (F), which have gained 63.4% over the past six months, were up slightly on Thursday after the close of trading, amid the release of Q4 and full-year 2020 earnings.

Ford Profit and Income Statement

Ford reported fourth-quarter earnings per share of $ 0.34, three times higher than last year’s $ 0.12 and better than analyst estimates of $ 0.07 loss per share.

Total quarterly revenue fell 16% to $ 33.2 billion, below Wall Street’s average forecasts of $ 33.89 billion. Ford’s quarterly revenue and earnings statistics for the last 2 years are available here.

Ford’s fourth-quarter loss was $ 2.8 billion, up from a loss of $ 1.7 billion a year earlier.

Ford sales in 2020

In its sales report last month, Ford reported that total vehicle sales in the fourth quarter of 2020 fell 9.8% to 542,749 vehicles, with all brands FoMoCo, Ford and Lincoln showing declines. While Ford’s quarterly sales in China rose 30%, sales in Europe fell 15%.

However, Ford retail sales recovered to 5.3% in December.

In the fourth quarter, Ford launched three highly anticipated vehicles that the company is betting on future sales growth: the electric F-150, the all-electric Mustang Mach-E crossover and the Bronco Sport crossover.

For all of 2020, total Ford truck sales fell 11.3%, while SUV sales were down 9.7%, and sales of passenger cars that Ford is discontinuing, except for key models such as the Mustang, fell. by 44.7% compared to 2019.

Ford lost $ 1.28 billion in 2020 as it undertook global restructuring and the fallout from the coronavirus pandemic. For comparison, profit in 2019 was $ 84 million. Revenues for the entire past year decreased by 18% to $ 127.1 billion.

Ford had $ 14.34 billion in cash and cash equivalents at the end of the quarter, up from $ 9.06 billion at the end of last year. Meanwhile, the debt was $ 137.67 billion, down slightly from last year’s $ 140.02 billion.

Ford plans to spend $ 29 billion on electric and autonomous vehicles by 2025

Ford CEO Jim Farley announced Thursday that the company intends to “accelerate all plans” to increase sales of its electric vehicles, increase battery capacity and create new electric and hybrid vehicles.

Ford’s pledged $ 29 billion investment includes $ 22 billion in electric vehicles “overwhelmingly” as well as hybrid cars, and $ 7 billion in self-driving technology, with a 10-year implementation plan through 2025. Some of the announced investments include previous investments from 2016.

Farley said the $ 22 billion investment does not include potential investment in battery production, whether by Ford itself or through a joint venture. Gene. The director added that Ford will have more partnership announcements soon.

In an interview with Reuters last fall, Farley said Ford is considering building its own battery pack as sales of electric vehicles soar worldwide.

Ford’s American rival General Motors Co (GM) said it would spend $ 27 billion on electric and autonomous vehicles by 2023, not including hybrids. GM said it plans to produce 30 electric vehicles globally by 2025, surpassing 1 million electric vehicles in the United States and China for the year.

Earlier this week, Ford partnered with Google (GOOGL, GOOG), which resulted in the automaker’s shares rallying. Read more in article “Ford-Google Deal Could Bring Automaker $ 5 Billion A Year”.

Ford’s 2021 forecast could be missed due to semiconductor shortages

Ford CFO John Lawler said the company expects to generate $ 8 billion to $ 9 billion in pre-tax profits by 2021. However, a global shortage of semiconductor chips, he said, could cut Ford’s profits from $ 1 billion to $ 2.5 billion this year.

Earlier Thursday, Ford said it would significantly cut production next week at its Michigan and Missouri factories that make lucrative F-150 pickups due to a shortage of semiconductor chips in the world. Other manufacturers GM, Volkswagen, Toyota Motor and Stellantis have also made similar claims about downtime at their factories.

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