Ford has announced the company's single largest profit since 1998, thanks in part to a one-time 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 market, helped Ford miss analyst estimates by 5 cents per share.


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 19 Comments
      jinushaun
      • 2 Years Ago
      "Beating the Street" should not be a business goal.
      Cornel001
      • 2 Years Ago
      Alternate title : "Analysts failed to meet reality" :)
      cpmanx
      • 2 Years Ago
      AutoBlog won't do the work for us, but the numbers are in the Bloomberg story: Excluding one-time adjustments, Ford earned $1.2 billion in the last quarter of 2011, up from $190 million in the same quarter of 2010. Even so, profits in the quarter, and for the year as a whole, fell slightly short of analysts' sky-high expectations. Ford is headed into a risky year, replacing the hot-selling Fusion and Escape with radically different (and very likely more expensive) models. Even though the new Focus is drastically improved over the old by most measures, its sales are flat or down because of higher pricing and several ergonomic problems; in the end, mainstream American buyers value reliability, smoothness, and room at least as much as they value cutting-edge style and sharp performance.
      BobinCobb
      • 2 Years Ago
      When a company misses earnings estimates, it says more about the analysts than it does about the company. But the press always makes it sound like the company screwed up, not the anal analyst missed the estimate. Don't blame the company, blame the analyst!
      Mat Ford Rayman
      • 2 Years Ago
      Who cares what these analysts say anyway? Their estimates never add any real value, they either false buoy a stock's price or falsely degrade it.
        • 2 Years Ago
        @Mat Ford Rayman
        [blocked]
          Mat Ford Rayman
          • 2 Years Ago
          I own Ford stock, and these projections generally have the effect of either increasing or lowering the value of the stock for a few days at most, unless it's an incredibly dramatic difference between the analysis and the actual reported earnings. And as far as I'm concerned, that means the analyst did a poor job. I have absolutely no faith in the people who do this type of analysis. They proved during the financial collapse that they are wearing blinders at best and at worst, are completely blind.
      Dvanos
      • 2 Years Ago
      Way to go Ford!! Who cares about the analysts, $8.8 billion is still a great achievement especially when compared to other American Auto companies.
      dohc73
      • 2 Years Ago
      FORD BLOWS.
      Jarda
      • 2 Years Ago
      FAAAAAAIL!!!1111!!!!!! /s very happy Ford fan
      • 2 Years Ago
      [blocked]
      amerifight
      • 2 Years Ago
      I’m going to avoid autoblog’s other post about fleet sales, why does this site always compliment Ford, then immediately insult them? The fact is they are doing business and making profit. Oh and one more thing, they have been doing this turn-around with private money, something the other two can’t claim.
        dohc73
        • 2 Years Ago
        @amerifight
        This isn't a compliment; this article is stating that their profits were due to tax gains not car sales. Smoke and mirrors as usual.
      digitalrefuse
      • 2 Years Ago
      I'm a little confused at some of the numbers thrown around in this post: In the first paragraph, we're told Ford made $190 million in 2010: "For perspective, Ford made $190 million in 2010." Then in the next paragraph, we're told that Ford made $463 million less than $8.8 billion (or $8.4 billion) in 2010: "The company made $8.8 billion in profit in 2011, or $1.51 a share. That's an increase of $463 million over 2010." Was the first paragraph supposed to refer to a specific quarter of the 201 calendar year?
    • Load More Comments