DETROIT: The Ford Motor Company reported that net income for 2014 plunged 56 percent from the previous year, as the automaker struggled with high product costs, lower volume and troubles in its international operations.
For the year, Ford said it earned $3.19 billion, down from $7.18 billion in net income during 2013, and its global revenue fell 2 percent from the year before.
Ford’s chief executive, Mark Fields, said while the company faced difficulties last year, expenses for new vehicles and factories in markets like China were necessary for longer-term success.
The year “was a solid yet challenging year for Ford, with our investments and a record number of new products launched around the world positioning us for strong growth this year and beyond,” Mr. Fields said.
The fourth quarter was particularly challenging for Ford, which is second to General Motors among American auto companies. Ford’s net income was $52 million in the quarter, a sharp decrease from the $3.07 billion it earned in the year-ago period.
The decrease was partly attributable to special pretax charges of $1.2 billion taken during the quarter, including an $800 million charge to account for currency fluctuations in Venezuela.
