DEARBORN, Mich. -- Ford Motor Co. made it a hat trick yesterday as the company joined its Big Three rivals in reporting record profits for 1994, making it the auto industry's most lucrative year ever.
But Ford's net income of $5.31 billion for 1994 was partially overshadowed by industry reports of weak auto sales in January and another increase in short-term interest rates by the Federal Reserve.
The 1994 profit for the No. 2 U.S. automaker was more than double its earnings in 1993. Spurred by strong U.S. sales and recovery in Europe, Ford surpassed by just $8 million its previous earnings record set in 1988.
Together Ford, General Motors Corp. and Chrysler Corp. earned $13.9 billion last year, compared with $2.4 billion in 1993 and easily eclipsing the previous record of $11.2 billion.
The profits came on the strength of a 9 percent increase in sales, but questions are already being raised about the continuing strength of the market. Industry sales were down about 3 percent in January from a year ago, according to reports released yesterday by about two-thirds of the automakers in the United States.
Still, auto officials and many analysts insist the boom is not over. "There is still plenty of steam left in this cycle," said David McCammon, Ford's vice president of finance.
Ford will not report its monthly sales until tomorrow, but Mr. McCammon said they would be higher than last January. Meanwhile, GM, Chrysler, Honda, Mazda and Mitsubishi all reported decreases in sales, while Toyota's were up.
Chrysler's sales were down 6 percent and GM's 5.5 percent in January. But a GM spokesman said that sales are still expected to rise modestly in 1995 and that the dip was "due more to product availability than market trends."
Concern about sales has increased because small-car sales have slowed, cash rebates to buyers are increasing and inventories of some popular cars are bloated, prompting some temporary plant shutdowns.
But analysts said the negatives are still overshadowed by a strong national economy. Inflation remains in check, job and income growth are strong and consumer confidence is high, they said.
Despite the angst over the market's direction, Ford and the other domestic automakers are basking in the glow of their banner year.
Ford, which has five of the 10 best-selling models, said profits in 1994 amounted to $4.97 share. Sales totaled $128.4 billion in 1994, up from $108.5 billion in 1993.