New York: Ford reported yesterday a jump in annual profits as it benefited from the US car boom, a return to profitability in Europe and an accounting change in pension expenses.
Annual profits were $7.4 billion, up from $1.8bn in 2014 as revenues rose 3.8 per cent to $149.6bn.
Results reflected the carmaker’s highest US sales in nine years following the launch of an aluminium-bodied F-150 version of its best-selling F-Series pickup trucks and other revamps.
Ford reported 2015 US car sales of 2.5 million vehicles, up 5pc from 2014.
North America remained the core of the second-largest US carmaker’s business, with operating profits rising 25.6pc to $9.3bn.
In Europe, Ford scored an operating profit of $259m, compared with a loss of $598m in 2014. The profit, Ford’s first in Europe since 2011, follows significant moves to restructure its European operations over the last couple of years, including plant closures and job cuts.
The gain in Europe helped to offset an annual loss of $832m in South America.
Results were boosted by a shift in the accounting of pension plans. When Ford announced the change on January 7, it said it would boost 2015 pre-tax profit by $1.5bn. Earnings for the fourth quarter were $1.9bn, up $4.4bn from the year-ago period.
“In 2016, we will continue to build on our strengths and accelerate our pace of progress even further, while transforming Ford into both an car and a mobility company and creating value for all of our stakeholders,” said Ford president and chief executive Mark Fields.