Ford anticipates increased profit for 2004 to a range of $1.20 to $1.30 per share, or total company pre-tax profit of $3.5 to $3.8 billion, excluding special items, the company said on Friday in a statement. Total automotive pre-tax profit, excluding special items, is targeted in the range of $900 million to $1.1 billion for 2004.
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The financial targets for 2004 call for an increase in the company’s overall earnings as new product launches and operational improvements drive growth in profitability, Ford said.
“Over the past two years, Ford has consistently delivered on financial commitments and exceeded earnings estimates and profit targets,” chairman and CEO Bill Ford said in the statement. “This progress has given us tremendous momentum and is only the beginning. In 2004 we will continue to accelerate our efforts, improving both automotive and overall corporate profits.”
The company is targeting total automotive pre-tax profits in the range of $900 million to $1.1 billion compared with an estimate of slightly better than breakeven for 2003, in each case excluding special items. The improvement from 2003 primarily reflects significantly improved results at Ford Europe and Premier Automotive Group.
Achievement of these goals will move Ford closer to meeting its mid-decade annual pre-tax profit goal of $7 billion, excluding special items, which was announced in January 2002.
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By GlobalDataFor is planning on an industry volume of 17 million units in the US and 16.9 million in Europe. It expects industry net pricing to be “down slightly” in both regions and its market share to either remain flat or improve in all regions.
Ford is also planning to cut the cost of making vehicles by at least $500 million in 2004. Capital spending will total $7 billion.
“Our 2004 milestones reflect our commitment to a solidly profitable business,” said chief financial officer Don Leclair in the statement. “By building on the basics, we will continue to reduce our operating costs and improve our quality, while launching great products that establish Ford as an industry leader.”
