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Rising aluminum costs cut into Ford's profit

When Ford reports fourth-quarter results on Wednesday afternoon, it is expected to fret that rising metals costs have cut into profits, even as rivals say they have the problem under control. Aluminum prices have risen 20 percent in the last year and nearly 11 percent since Dec. 11. Steel prices have risen just over 9 percent in the last year. Ford uses more aluminum in its vehicles than its rivals. Aluminum is lighter but far more expensive than steel, closing at $2,229 per tonne on Tuesday. U.S. steel futures closed at $677 per ton (0.91 metric tonnes). Republican U.S. President Donald Trump's administration is weighing whether to impose tariffs on imported steel and aluminum, which could push prices even higher. Ford gave a disappointing earnings estimate for 2017 and 2018 last week, saying the higher costs for steel, aluminum and other metals, as well as currency volatility, could cost the company $1.6 billion in 2018. Ford shares took a dive after the announcement. Ford Chief Financial Officer Bob Shanks told analysts at a conference in Detroit last week that while the company benefited from low commodity prices in 2016, rising steel prices were now the main cause of higher costs, followed by aluminum. Shanks said the automaker at times relies on foreign currencies as a "natural hedge" for some commodities but those are now going in the opposite direction, so they are not working. A Ford spokesman added that the automaker also uses a mix of contracts, hedges and indexed buying. Industry analysts point to the spike in aluminum versus steel prices as a plausible reason for Ford's problems, especially since it uses far more of the expensive metal than other major automakers. "When you look at Ford in the context of the other automakers, aluminum drives a lot of their volume and I think that is the cause" of their rising costs, said Jeff Schuster, senior vice president of forecasting at auto consultancy LMC Automotive. Other major automakers say rising commodity costs are not much of a problem. At last week's Detroit auto show, Fiat Chrysler Automobiles NV's Chief Executive Officer Sergio Marchionne reiterated its earnings guidance for 2018 and held forth on a number of topics, but did not mention metals prices. General Motors Co gave a well-received profit outlook last week and did not mention the subject. "We view changes in raw material costs as something that is manageable," a GM spokesman said in an email.

2021 Ford Raptor vs Ram TRX Specs Compared

Hopefully by now you've had a chance to read our thorough 2021 Ford F-150 Raptor review. If not, check it out, 'cause you'll find a lot more detail and expertise than normal (for Autoblog or anywhere) thanks to Dan Edmunds' vast engineering and off-roading background. If you want all the dirt on the Raptor, pun intended, that's where to turn. If you just want to gaze at the specs, however, and wonder how they compare to the old Raptor or to the Ram TRX, check out the chart below. There you will find dimensions, clearances, angles, weights, capacities, engine output and fuel economy for the 2021 Raptor with both 35-inch and 37-inch tires. As Dan explains in his first drive, there's actually more going on there than just tire sizes. You'll find the same specs for the outgoing second-generation Raptor plus the 2021 Ram 1500 TRX and the less extreme Ram Rebel trim level in the chart, too.  Other reviews and deep dives about the F-150 and TRX 2021 Ram 1500 TRX First Drive Review Our review of the Raptor's chief competitor, the mighty TRX. That just sounds like we're talking about Jurassic Park.    2021 Ram TRX Suspension Deep Dive and RTI ramp test Follow along with engineer Dan Edmunds as he takes you under the TRX and explains everything there is to know about its suspension -- and how it's able to do what it does.    2021 Ford F-150 Full-Line Review   2021 Ford F-150 Suspension Deep Dive It's a totally different F-150 flavor to be sure, but even the volume-selling XLT received a lot of work for 2021. Dan Edmunds takes you underneath the truck to show you what's different and what difference it makes.    Photo Galleries of Each Truck 2021 Ford F-150 Raptor 2021 Ford F-150 Raptor View 16 Photos   2021 Ram 1500 TRX 2021 Ram 1500 TRX front 3/4 in motion View 53 Photos   Ram 1500 Rebel 2019 Ram 1500 Rebel View 42 Photos   Second-Generation Ford Raptor 2019 Ford F-150 Raptor View 37 Photos

Ford nets $5.7B in 2012, $1.6B in fourth quarter

Ford brought in $5.7 billion in net income during 2012, which is around $307 million less than one year prior. Even so, the automaker closed out 2012 with the highest pre-tax profit for a single quarter in nearly 10 years, earning $1.7 billion in the fourth quarter thanks largely to a higher-than-average truck mix in the US. That's a jump of $577 million over 2011. Likewise, that translated into fourth quarter income of $1.6 billion. All told, Ford set a full-year pre-tax profit record in 2012. But that doesn't necessarily mean everything is rosy in the land of the Blue Oval.
Like every other manufacturer, 2012 saw Ford get hammered in the European Union, where a deep economic recession continues to drive down consumer confidence. The automaker lost more than $700 million in Europe, and saw full revenue of $26.6 billion in 2012. That's a decline of $7.2 billion compared to last yea. Ford says the market for new vehicles in Europe has contracted to 13.5 million units, the lowest number in 17 years. You can read the full press release below for more information.