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Ford CFO on 4Q Earnings, Outlook for 2013

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    Ford Motor Company CFO Bob Shanks on the company’s fourth-quarter earnings results.

  • Duration 3:58
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The earnings season is in full swing and American auto giant Ford -- a mid morning motor company posting its highest fourth quarter pretax profit and more than a decade but shares of the carmaker are down big on Ford's lackluster European performance sort of -- -- us gusts.

The -- that no is ready for and also look at 313 or is money in chief financial officer Bob -- -- Bob it's great to have you here -- You know the gotta talk about Europe here in obvious say this two billion dollar loss more than what analysts were expecting.

You're saying -- recession in Europe high in the turn around the story overseas.

Yeah I thought you might ask about Europe and -- down.

That we had a loss of about a billion -- in 2012.

That was consistent with the guidance that we had out there.

We thought thirteen when we gave found.

Announced a restructuring plan October we thought thirteen would be about the same but now looks like it'll be slightly worse at about two billion.

And that's around the lower industry.

The economic environment is the -- rating.

And and that's being reflected in industry sales and so we think that we'll have you know some adverse effect on us in 2013.

But yet you know above the North American story is strong and I think that's what -- -- yes the stock reacts today eateries in the biggest drop in your stocks since.

August of 2011 percentage basis anyway that's obviously because of the concern about Europe but.

He's got 773 million dollars in the Michigan -- explain barrel one point six billion in the fourth quarter.

I -- North America so so the North American story our analysts as the street missing that today do you think.

Well I think what's being missed perhaps seven got to focus on the total company certainly we have challenges in Europe and -- restructure Europe we're on track and it will contribute positively by mid decade.

But in total the company made eight billion dollars we generated positive operating cash flow of about 3.4 billion.

We're guiding next year to a result about the same in terms of profitability and stronger cash flow so.

You know I think that demonstrates the progress -- our plans making and you know 2013 so going to be a very very strong year for this company.

Well you know Bob that -- -- Asian automakers in particular Toyota they're saying an upswing because of the devalued yen in the currency markets and what Japan just dead.

A -- monetary policy plus for them.

Good to be a difficult story for US auto makers how do you fight back against that I mean isn't isn't going to Washington as a calling up your congressman -- -- you -- Well I think we do have to to work with our.

-- with our government officials.

About manipulation of of currencies where -- is Japan or or any other currency for any other market but.

I think what we have to do as a company -- make sure we keep delivering our plan in terms of fabulous products.

You know great value to consumers great quality.

And if we do that manage production.

Against -- -- I I think that will be fine which is what we've seen in the United States over the last several years and and we'll see once again in 2013.

You know -- know the F series has been a strong vehicle for all of being you know you -- the Detroit auto show talking about.

The capacity build up for North America in 2013.

Or did you up your percentages -- all for the North American built.

What we are expecting and that.

That we'll see perhaps stronger segmentation in terms of full size pick up the 2013 the housing recovery.

Exploration and oil and so forth construction.

Probably will give us a bit of boost there we are entering the year with an incremental 400000 units of capacity.

Across the whole system not just F series.

And that will help us grow share and and 2013.

Which is one of the contributors to the strong growth that we expect to see and results in the US next year.

-- -- you -- -- Mulally have certainly taken that the 41 approach and again in the company never filed for bankruptcy never took a bailout.

And we're going to be watching Bob shanks thank you for being here it's good to see you.

-- -- thank you very much right keep an eye on that stock.

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