DETROIT -- Ford Motor Co. today said its profit fell 56 percent in 2014 as it introduced 24 vehicles around the world, including the new Mondeo in Europe.
Ford posted net income of $3.2 billion, down from $7.2 billion in 2013. It earned $52 million in the fourth quarter, marking its 22nd consecutive profitable quarter, but that was down from $3 billion in the same period a year earlier, when results were boosted by favorable tax benefits.
Ford said it would keep relying on North America for its profit this year as it signaled that losses in Europe would be more than previously forecast.
Ford had previously estimated losses from Europe at about $250 million in 2015. On Thursday, however, it backed away from that forecast, saying the loss would narrow from $1 billion in 2014 but would be wider than previously thought.
"We're seeing a much bigger impact from Russia," Chief Financial Officer Bob Shanks said.
In Europe, Ford’s losses narrowed to $443 million in the fourth quarter, down from $559 million during the last quarter of 2013, and $1.1 billion on the year, down from $1.4 billion in 2013.
Ford's Russian operations contributed to its European troubles as the automaker was hit last year by a $348 million loss in the country, where lower oil prices and a weak ruble are expected to lead to continued economic woes.