Ford Motor Company reported a 2012 full year pre-tax profit of $8 billion on the strength of record results from North America and continued solid performance from Ford’s captive finance arm, Ford Motor Company Credit. Full year net income was $5.7 billion, or $1.42 per share.
Ford generated positive automotive operating-related cash flow of $1 billion in the fourth quarter, which marks the eleventh consecutive quarter of positive performance.
Stock price takes a hit
The good news about the company's profit was not enough to reassure investors, however. Ford stock closed at $13.14, down 4.64 percent or 64 cents/share.
The company recently doubled their common stock dividend from five cents to ten cents per share. Read: Ford doubles quarterly stock dividend.
"The Ford team delivered strong results once again, underscoring that our One Ford plan is working," said Alan Mulally, Ford president and CEO. "
Ford’s European operations continue to be a drag on the company’s bottom line. For the full year, Ford Europe continued to be negatively impacted by the challenging economic conditions in the region.
Ford will incur higher costs associated with its restructuring actions, mainly investment in new products, accelerated depreciation, and costs to implement its revised manufacturing footprint.
Despite aggressive cost cutting, Ford says they expect full year 2013 results for Ford Europe to be a loss of about $2 billion.
Spreading the wealth
Ford will make profit sharing payments to approximately 45,800 eligible U.S. hourly employees on March 14, 2013. According to Ford, individual profit sharing checks up to $8,300 will be distributed. The company did not disclose bonus amounts for salaried employees.