DETROIT (AP) — Ford Motor Co.’s fourth-quarter net income fell 90% from a year earlier as shortages of computer chips and other parts slowed factories and cut vehicle sales.
The Dearborn, Michigan, automaker said it made $1.26 billion from October through December, with revenue up 17% to $44 billion. The company made an adjusted 51 cents per share, falling short of Wall Street estimates of 62 cents.
Quarterly revenue, however, exceeded estimates of $41.39 billion, according to analysts polled by FactSet.
Ford’s sales in the U.S., its most profitable market, dropped 5% during the fourth quarter as the company was hit hard by parts shortages along with other automakers.
CEO Jim Farley said in a statement that the company should have done better last year, and it left $2 billion in profits on the table that were within its control. He said Ford will correct that with improved execution this year.
Ford’s performance comes with a backdrop of rising interest rates and declining vehicle sales overall. The Federal Reserve raised its key rate 0.25% on Wednesday to a range off 4.5% to 4.75% as it continues to battle stubborn inflation. The increase is almost certain to raise the average new auto loan rate above January’s 6.9%, making it more expensive to buy vehicles, according to data from Edmunds.com.
Strong prices for Ford vehicles helped to offset declining sales. Customers paid an average of $56,143 for company vehicles in the fourth quarter, about 10% more than the previous year. Many of those sales were high-end trucks and SUVs.