Ford eclipses GM record
NZPA-Reuter Ford Motor Company said its net income rose 15 per cent in 1988 to a United States car industry record of SUSS.3 billion (SNZB.6 billion), eclipsing the previous high reported by General Motors Corporation. It was the third straight year Ford has had record net income. In 1987 the company earned SUS 4.6 billion. For the fourth quarter, Ford earned SUSI.I6 billion, or 5U52.42 a share, up from its 1987 fourth-quarter results of SUS 932 million, or SUSI.B7 a share. On Tuesday GM reported net income of SUS4.B6 billion (SNZ7.9O billion) for 1988, setting an industry record and surpassing its previous earnings peak of SUS4.S billion in 1984. Ford said its overseas operations earned a record SUS2.I billion in 1988, up from SUSI billion in 1987. But its United States car profits fell to SUS2.S billion from 5U52.75 billion. Earnings also declined at its financial services unit, which had a net profit of SUS69I million, down from SUSBS7 million in 1987. Ford’s 1988 net income for both the quarter and year were in the middle of the range estimated by car industry analysts. The car maker said its international operations were boosted by record industry volume in Europe and higher operating efficiencies. It said earnings also rose in the Asia-Pacific region, reflecting strong industry volume and lower marketing costs, and in Latin America. Ford said its United States car profits declined because of higher product and marketing costs, as well as a less favourable product mix. However, Ford in 1988 saw its share of the United States car market increase to 21.7 per cent, the highest for the car maker in 10 years and up 1.5 percentage points from 1987. Ford said earnings on total car operations, domestic and international, were SUS 4.6 billion in 1988 on sales of SUSB2.2 billion, compared with income of $U53.76 billion on sales of SUS7I.B billion in 1987. Ford’s board of directors in January announced a 25 per cent increase in the dividend, from US6Oc to US75c a share.
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Press, 18 February 1989, Page 20
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340Ford eclipses GM record Press, 18 February 1989, Page 20
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