Ford posted earnings per share of $0.26 for the fourth quarter of 2014, which missed last year's $0.32 but surpassed the Zacks Consensus Estimate of $0.22. Revenues fell 4.5% to $35.9 billion, but exceeded the Zacks Consensus Estimate of $34.1 billion. Ford affirmed its pre-tax profit guidance of $8.5 billion to $9.5 billion for 2015. The positives for Ford include its focus on the Asia-Pacific and Middle East & Africa regions, its global expansion plans, efficient capital deployment, success of the One Ford plan and its solid long-term outlook. However, there are several headwinds, such as weakness in South America and Europe, frequent product recalls and rising expenses. We have maintained a Neutral outlook.
Ford Motor Company (F) is an auto manufacturer and auto financial services provider with operations in the U.S. and across the world. The company manufactures and distributes automobiles in 200 markets across 6 continents.
Ford has two operating sectors Automotive and Financial Services. The segments under the Automotive sector have been restructured as Ford North America, Ford South America, Ford Europe, Ford Middle East & Africa and Ford Asia Pacific. The Automotive sector (which generated roughly 94.3% of the company's total revenue in the first nine months of 2014) is engaged in the design, development, manufacture, sale and service of cars and trucks. More than 60% of the consolidated auto revenue is derived from truck sales, while car sales generate the balance.
The Financial Services sector (5.7%) includes the segments of Ford Motor Credit and Other Financial Services. Ford Motor Credit deals with vehicle-related financing, leasing and insurance, while the Other Financial Services segment includes a variety of businesses such as holding companies, real estate and financing and leasing of its vehicles.
The company's key competitors include Chrysler Group LLC, General Motors Company, Honda Motor Company, Nissan Motor Company and Toyota Motor Corporation.
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