Contrasting indications from the automotive sector: Ford disappoints, Seat surprises. The American house has communicated negative forecasts on data for the first quarter and for the whole of 2017. As stated in the filing submitted to the Securities and Exchange Commission, the Detroit giant expects earnings per share for the first quarter between 30 and 35 cents, much less than the 47 cents expected by analysts. The causes are various: increased costs (warranty, raw materials and investments), lower volumes and unfavorable exchange rates.
Looking at the full year, however, the company expects adjusted pre-tax earnings of approximately $9 billion, down on 2016, also due to the plan to invest in opportunities in emerging countries. The figure should improve in 2018. Pre-tax profit is expected to be around $1,5 billion this year and up in 2018. Among the risk factors Ford has also included possible negative effects of economic, geopolitical and related tensions protectionist trade policies and the possibility of cyberattacks on operating and security systems. Ford's stock fell 1,5% at the start of the session on Wall Street, after the -2,5% recorded in the pre-market.
As for Seat (Volkswagen Group), 2016 was a record year with an operating profit of 143 million euros, compared to the loss of 7 million in 2015, on a turnover up 3,2% to almost 8,6 billion. This is the first operating profit since 2007. This was communicated by the manufacturer, which in 2016 also recorded a profit after taxes before extraordinary charges of 232 million (6 million in 2015).
Seat, which exported 82,4% of production last year, also recorded sales progress to 408.700 units, the best result since 2007. Four new models presented between 2016 and 2017, including the Ateca , the first SUV of the Spanish house. Thanks to the good performance, a bonus for a total of 6 million is foreseen for the employees. This year, Seat will complete the biggest product offensive in its history with the arrival on the market of the fifth generation Ibiza (from summer) and the launch of the compact crossover Arona (second half 2017), both produced at the Spanish Martorell site. With the growth of the range, Seat aims to increase the market share in Europe to 72, from 53%.
“We are working on various internationalization projects – explained the president Luca De Meo – such as the decision to produce in Algeria starting from the second half of the year. This is a group project that will start with Ibiza and Golf, but Seat will take over the leadership. All Ibizas sold in Algeria will be manufactured in Martorell and the final assembly will take place in Algeria, in the importer's new factory”.
Seat has finally announced a third SUV model, which will be placed in the segment above that of the Ateca, will be available in 5 and 7-seater versions and will arrive in 2018. It will be designed and styled in Barcelona, but produced in Wolfsburg, Germany, which 'it will strengthen the ties between Seat and Volkswagen', concluded De Meo.
