Ford’s earnings increased 65% in 2017

DEARBORN, Mich. — Ford Motor Co.’s full-year earnings jumped 65 percent to $7.6 billion in 2017 because of tax and pension changes, but it’s already warning that this year will be tougher.

The adjusted earnings, of $1.78 per share, fell just short of Wall Street’s predictions. Analysts polled by FactSet predicted earnings of $1.79 per share.

Ford warned last week that its earnings will likely fall this year as U.S. sales soften. Ford is also being affected by rising costs for steel and aluminum, which accounted for a $1.2 billion hit to its 2017 earnings. Ford spends around $10 billion on commodities each year, with steel and aluminum accounting for two-thirds of that total.

The automaker expects to earn between $1.45 and $1.70 per share this year.

The lion’s share of Ford’s profits came from North America last year, where Ford posted a pretax profit of $7.5 billion. Ford eked out small profits in Europe and Asia but lost money in South America, the Middle East and Africa. Ford Credit, its finance arm, reported a $2.2 billion profit for the year.

Ford’s automotive revenue rose slightly to $145.7 billion even though its global sales were flat at 6.6 million cars and trucks.

Ford’s fourth-quarter earnings jumped to $2.4 billion — from an $800 million loss a year ago — largely due to a recalculation of its pension costs and its future taxes. Its adjusted profit, of 39 cents per share, fell short of analysts’ forecast of 44 cents.