Ford Motor 2016 income falls, quarterly profits short of estimates

Ford Motor Co. posted a significant reduction in its net profit for 2016, as it converted from being a target of President Donald Trump's criticism, to welcoming kind words from the leader.

The Detroit-based car-maker reversed a decision to build a plant in Mexico, in favour of the creation of 700 jobs in the United States instead, after being heavily criticised by the Republican.

Profits for the company's fiscal year dropped by 38% compared with the corresponding quarter of 2015, to $4.6bn. An accounting change at Ford, affecting issues such as pension regulations, led to a $2bn extra spend for the company.

Ford's fourth -quarter net income totalled $783m, down $2.65bn from the 2015 quarter, again largely due to the pension accounting change.

Analysts had predicted Ford would earn 32 cents per share during the fourth quarter. Including the factoring in of special items, Ford posted 30 cents per share.

Chief executive Mark Fields has reportedly met twice this week with the President, as Trump continues to drive home his "America First" approach, creating products and jobs in the country.

"We achieved a solid 2016 net income of $4.6bn, as well as an adjusted pre-tax profit of $10.4bn, which was our second best ever — building on the all-time record we had set the year before," Fields said in a statement. "This underscores the substantial progress we are making in expanding our business to be an auto and a mobility company."

Ford's share price was 1.64% lower during pre-market trade on Thursday.