Ford’s Profits Decline Almost 13%; High Taxes, Costs Blamed

Ford Motor Co.’s first-quarter profits declined almost 13% to $783.3 million from $897.2 million reported a year ago because of heavy taxes, company officials said Friday.

Net income per share declined 14% to $4.20 a share from $4.90 a year before, but worldwide sales increased almost 2% to $13.2 billion from $13 billion a year ago.

Ford set aside about $527 million in taxes for the quarter after it used up all investment tax credits and carry-forwards, spokesman Tony Fredo said.

On a pre-tax basis, the No. 2 auto maker earned a record $1.3 billion, $18 million more than a year ago.

The auto maker also attributed the decline to the high costs of new product development and plant investments.

Part of Ford’s $2.9-billion program to bring out its Ford Taurus and Mercury Sable mid-sized cars this fall and a $750-million program to put its Aerostar mini-van on the road were included in its $819.8 million in capital expenditures, up almost 60% from $512.7 million in the year ago quarter, Fredo said.

Ford’s share of the domestic car market rose almost 1% to 19.9% contrasted with its share a year ago. The auto maker said higher sales of its Tempo and Topaz compact models largely accounted for the rise.

Ford offered 8.8% sales incentives on those models through April 22.