Ford back in the black, although weaker 4th Quarter

[a_misfit]

http://www.autonews.com/apps/pbcs.dl...110129842/1424
Ford's 2010 net is best in a decade; Q4 drops on actions to cut debt
Jamie LaReau

DETROIT -- Ford Motor Co. today posted a $6.56 billion profit for 2010, its highest annual net income in more than a decade, fueled by improved products and pricing.

But its fourth-quarter profit plunged, due to actions to pay down debt that Ford took on before the financial crisis hit. The automaker also confronted rising costs for launching new vehicles and suffered an unexpected loss in Europe.

“We're in transition mode now,” Ford CFO Lewis Booth said during a media briefing today, predicting that 2011 will be more profitable than 2010. “We've fixed the fundamentals of the business. I think the thing that pleases us immensely is the improvement in the balance sheet.”

Booth said the results fell short of analysts' expectations because an increase in structural costs was not reflected in most analysts' estimates.

Booth said those structural costs included the increased costs for product launches, higher engineering expenses and rising marketing costs as Ford launched new and redesigned products.

Fourth-quarter net income was $190 million, the seventh straight quarter of black ink, down from $886 million a year earlier. Not counting special charges, including a $960 million charge tied to a payment to convertible debt investors, Ford earned $1.2 billion. The payment helped reduce Ford's automotive debt by more than $1.9 billion.

European operations reported a $51 million loss, missing the company's expectations, because of lower market share and higher costs.

Cash, debt

The automaker finished the year net cash positive for the first time since the second quarter of 2008.

Ford ended the year with $20.5 billion in gross cash while reducing debt to $19.1 billion. It has $7.4 billion in liquidity left on a revolver loan.

Ford reduced its automotive debt by $14.5 billion in 2010, a 43 percent reduction. As a result, Ford says it has lowered its annualized interest expense by more than $1 billion.

Booth said Ford will continue to take actions to improve its balance sheet with the intention to reach an investment-grade rating, a status it lost in 2005.

“As you approach investment grade, you see the spreads on your borrowing costs improve,” Booth said. “We're seeing the benefit now from the improved balance sheet and our improved business.”

Ford also raised its first-quarter North American production plan by 15,000 units to 650,000.

Regional results

During the fourth quarter, Ford's automotive revenue in North America grew by $1.6 billion to $17.2 billion. North America posted a pretax operating profit of $670 million in the period, up $59 million from a year earlier. For the full year, North America swung to a pretax operating profit of $5.4 billion from a loss of $639 million in 2009.

Ford reported a $253 million profit from Europe in the fourth quarter a year earlier. In December, the automaker's European sales dropped 23 percent as other manufacturers offered rebates to lure buyers.

The European market “was incredibly competitive in the fourth quarter,” Booth said. Ford lost share in Europe in the quarter.

“We're not going to chase market share,” Booth said, emphasizing that Ford held the line on pricing rather than putting high incentives on vehicles to pump up sales.

For 2010, Ford in Europe had a pretax operating profit of $182 million, swinging from a loss of $144 million in 2009.

Europe's full-year profit was topped by that of Asia Pacific Africa, which posted pretax operating profit of $189 million in 2010, compared with a loss of $86 million in 2009. In the fourth quarter, Asia Pacific Africa's profit was $23 million, up from $16 million a year earlier.

In August, Ford sold its Volvo Cars unit to China's Zhejiang Geely Holding Co. In 2009, Volvo had revenue of $12.4 billion, Ford said.

For 2011, Ford expects each of its automotive operations to be profitable. Additionally, Ford's global operating margin in 2011 is expected to be equal to or improved from 2010, the automaker said.

Worldwide, Ford earned $741 million on its core automotive operations during the fourth quarter, compared with $914 million a year earlier.

Ford's 2010 revenue rose to $120.9 billion from the $116.3 billion recorded in 2009. The automaker excluded revenue from Volvo, which was sold in August, in both figures.

Second straight black-ink year

The results marked the second straight annual profit for CEO Alan Mulally, who has shed brands and put a global focus on the Ford marque while establishing the automaker as a leader in in-car information technology. In 2009, Ford ended three years of losses by earning $2.72 billion.

“Our 2010 results exceeded our expectations, accelerating our transition from fixing the business fundamentals to delivering profitable growth for all,” Mulally said in a statement. “We are investing in an unprecedented amount of products, technology and growth in all regions of the world.”

Ford says it plans to deliver “continued improvement in pre-tax operating profit and automotive operating-related cash flow” in 2011. Last year's profit was the highest since the $7.2 billion netted in 1999.

Ford credits its 2010 gains to improved vehicle quality, new product launches such as the Fiesta subcompact and aggressively restructuring the business to reduce costs and improve global operations through new investments in global markets.

“For Ford, 2010 was a breakout year in terms of customer perceptions of their design and quality,” said Adam Jonas, an analyst with Morgan Stanley in New York, said before today's results were announced.

More cash than debt is a good sign.

[jpd80]

Hey guys here is the official Ford announcement with all facts and figures ....LINK

In 2010 Ford made $6.6 billion profit globally and reduced its debt by $14.5 billion.
Their cash at hand is now $20.5 billion which exceeds net debt by $1.4 billion.

Another year like 2010 and Ford will be debt free, this year is looking to be even bigger.

[Falcon_Crazy]

Great news. the new ranger will be big business globally

[Iggypoppin']

Excellent news from ford.

[Ohio XB]

I watched the MAYHEM on the Ford message board in the Yahoo Financial section. You would have thought the world ended! Guys were screaming "sell, sell, sell!!!!" like Ford was going out of business. They wondered how Mulally could be such a sham and they knew he wasn't for real. How could this happen to Ford!!!

Holy cow.

Ford could have posted a "pretty" 4th Quarter to make the analysts on Wall Street happy, but instead they decided to put their company in a better position. They paid off more debt, over $7 billion in the 4th quarter. This will save Ford $1 billion in interest payments next year, got Ford having more cash in hand than debt for the first time since 2008, and paid off $14 billion in debt in 2010 alone!

And they keep complaining about when GM is going to pay back THEIR government loan! Ford is paying back their private bank loans ON THEIR OWN and Wall Street spanks them for it. Go figure.

Personally, I am very happy that Ford chose to put that money towards their debt rather than just post a pretty profit and not have their books doing as well. Mulally is a frigging genius and isn't letting outside expectations affect his decision making. They are dead set on fixing the balance sheet and getting Ford back to a top lending and investment grade.

US sales netted a loss in 2009 in the hundreds of millions. In 2010 Ford netted over $5 billion in profit. Let's see any other car manufacturer have an improvement like that!!! Talk about a turn around!


For those who love to complain about Profit Sharing for the UAW, I've done some math for you. Please feel free to check it.

Eligible employees according to Ford - 40,600.

AVERAGE check - $5,000

Total of Profit Sharing checks - $203,000,000

Total net profit for the year - $6.6 billion

Percentage of net profit used for profit sharing - $203 million divided by $6.6 billion = 0.03 for a 3% "chunk" of profits.

Yes, only 3% of total profits for the year are going to Profit Sharing for UAW workers. Also, profit sharing is based only on US sales profit. Somewhere there are people who think the UAW get's 50% of profits and is killing Ford!


Ford could not be in a better position. Getting their debt paid off, saving on interest, VEBA contributions paid in full, gained market share for 2 consecutive years, huge profit gain over last year with 2 profitable years in a row, all new Explorer and Focus hitting the market in US, all new engine line for F-150, and on and on. Ford has momentum and is hitting on all cylinders.

I am going to guess Ford will have their debt to where they want it (All corporations "leverage" themselves a little at all times) by the end of this year. Then what will Wall Street say? Ford quit paying on their debt? Gotta complain about something I guess.

What a great time to be Ford, work at Ford, and own Ford!!


By the way, we had a line speed increase and we also have additional days scheduled every week now through April with more lined up "just in case."


Steve

[jpd80]

Originally Posted by Ohio XB

I watched the MAYHEM on the Ford message board in the Yahoo Financial section. You would have thought the world ended! Guys were screaming "sell, sell, sell!!!!" like Ford was going out of business. They wondered how Mulally could be such a sham and they knew he wasn't for real. How could this happen to Ford!!!

Holy cow.

Ford could have posted a "pretty" 4th Quarter to make the analysts on Wall Street happy, but instead they decided to put their company in a better position. They paid off more debt, over $7 billion in the 4th quarter. This will save Ford $1 billion in interest payments next year, got Ford having more cash in hand than debt for the first time since 2008, and paid off $14 billion in debt in 2010 alone!

Quite amazing given that in November Ford told everyone what
they would be doing in December as far as debt reduction goes.

Wall Street got this $8 billion net profit figure in their head and
when Ford "only" achieved $6.6 billion the apocalypse began.....

completely ignoring Ford $14.5 billion debt reduction last year...

[Resurrection]

http://online.wsj.com/article/BT-CO-...28-714287.html

May Allan Mullay's reign continue for years to come.

[SSD-85]

It would interesting to see stats on Ford Oz. As we seem to be taking a beating here.

[jpd80]

Originally Posted by Scotty85

It would interesting to see stats on Ford Oz. As we seem to be taking a beating here.

while the separate figures for Australia haben been released just yet,
FoA is part of the Asia pacific Africa region, here's the official results:

Asia Pacific Africa: In the fourth quarter, Asia Pacific Africa reported a pre-tax operating profit of
$23 million, compared with a profit of $16 million a year ago. The increase is more than explained by higher volume, offset partially by unfavorable mix. Fourth quarter revenue, which excludes sales at unconsolidated China joint ventures, was $2.2 billion, up from $1.7 billion a year ago.

For the full year, Asia Pacific Africa reported a pre-tax operating profit of $189 million, compared with a loss of $86 million a year ago. The improvement primarily reflects higher volume, and lower material, freight and warranty costs, offset partially by higher structural costs to support investment in Ford’s product and growth plans, and unfavorable mix.

To put that in context, Asia pacific Africa's production has increased massively
from 253,000 in 2009 to 827,000 last year....That's a huge increase in sales.
FoA's 100,000 sales now looks small, our impact is now far less than India and China.

FoA's annual sales revenue is usually just over $2 billion, APA's revenue is now $7.4 billion.
By those estimates, even in these ordinary times FoA may have managed $20-30 million profit.

[Ohio XB]

JPD80, you are right. It seemed so many investors put all the weight on Ford meeting their guess and completely ignored Ford's actions to improve their financial status. I couldn't believe it.

For the full year, Asia Pacific Africa reported a pre-tax operating profit of $189 million, compared with a loss of $86 million a year ago.

At the town hall meeting Mulally praised Asia/Pacific/Africa for such a great improvement. It was a $275 million improvement, besides having a profit after a loss the previous year. In the past some leaders may have said "That's all?" instead of looking at the whole picture this way. That's what separates Mulally from "the usual" leaders.

[phillyc]

Ford, Mullaly and Booth are doing the right thing! Paying off the debt even though there were some hefty fees attached is a great thing. A $14B reduction in debt for 2010 is an AWESOME achievement.

About half came from profits, the other came from early repayment. The first point is that they are making money to begin with. The second which is really important, is that they feel comfortable with the amount of cash on hand and debt available to them. Clearly Ford believe the worst is behind them and that even with increasing R&D and launch costs for the new models, Ford is now a solidly profitable business.

[aussie muscle]

Originally Posted by phillyc

A $14B reduction in debt for 2010 is an AWESOME achievement.

imagine what the interest payment would've been on 14b?

[phillyc]

Originally Posted by aussie muscle

imagine what the interest payment would've been on 14b?

$1B which is enough saved to pay for the Global T6 Ranger and it's Everest SUV offspring that Ford Australia has been designing the last couple of years and what is about to be released very soon.

Or with Ford making about 5.3 million vehicles globally in 2010, you could say about $200/vehicle was saved.

[vztrt]

http://www.autoblog.com/2011/01/28/f...-6-6b-in-2010/

Ford earned $190M in Q4, $6.6B in 2010

by John Neff (RSS feed) on Jan 28th 2011 at 10:27AM

Ford announced this morning that the company earned net income of $190 million in the fourth quarter of last year, which is actually down sharply from the $886 million earned in the same quarter a year ago. The reason for the dip, however, is a good one, as Ford took on $960 million in debt reduction charges during the quarter, which ultimately reduced the company's debt by $1.9 billion.

It's a different story for last year as a whole, as Ford is reporting a $6.6 billion, that's with a 'b', profit for all of 2010 – Ford's best fiscal performance in over a decade. This means the Blue Oval has $20.5 billion in gross cash on hand, while it's debt has been reduced to $19.1 billion. Over the course of last year, Ford reduced its debt by a total of $14.5 billion or 43 percent, all of which was taken on before the financial crisis and used to weather the storm of uncertainty.

Ford's full-time work force will also be happy to hear that the company's financial performance last year means healthy profit sharing in the form of approximately $5,000 for each employee. Ford also announced that it's raising its first-quarter production plan in North America by 15,000 units to 650,000, which means even more job security for those on the assembly room floor.

[Source: Ford, Automotive News - sub. req.]

Press Release

FORD REPORTS 2010 FULL YEAR NET INCOME OF $6.6 BILLION; FOURTH QUARTER NET INCOME OF $190 MILLION+

* Full year net income was $6.6 billion, or $1.66 per share, a $3.8 billion increase from a year ago. Pre-tax operating profit was $8.3 billion, an increase of $8.3 billion from a year ago.
* Fourth quarter net income was $190 million, or 5 cents per share, a decrease of $696 million from a year ago. Net income was negatively impacted by a previously disclosed $960 million charge for completion of debt conversion offers in the quarter that reduced outstanding Automotive debt by over $1.9 billion.
* Fourth quarter pre-tax operating profit was $1.3 billion, or 30 cents per share, a decrease of $322 million from a year ago. Ford now has posted a pre-tax operating profit for six consecutive quarters.
* Automotive pre-tax operating profit was $741 million for the fourth quarter and $5.3 billion for the full year, an improvement of $7.2 billion from full year 2009.
* Ford Credit reported a pre-tax operating profit of $572 million for the fourth quarter and $3.1 billion for the full year, an increase of $1.1 billion from full year 2009.
* Revenue was $32.5 billion in the fourth quarter and $120.9 billion for the full year, an increase of $17 billion from full year 2009, excluding Volvo from 2009.
* Ford continued to reduce Automotive debt with an additional $7.3 billion of actions taken in the fourth quarter, including $2.5 billion of newly announced reductions. For the full year, Ford reduced Automotive debt by $14.5 billion, or 43 percent, which will lower annualized interest expense by more than $1 billion.
* Ford ended 2010 with Automotive gross cash exceeding debt by $1.4 billion, an improvement of $10.1 billion from year end 2009. Ford ended 2010 with $20.5 billion of Automotive gross cash.
* Ford generated positive Automotive operating-related cash flow of $1 billion in the fourth quarter and $4.4 billion in 2010, an improvement of $5.2 billion from full year 2009.
* Ford plans to deliver continued improvement in pre-tax operating profit and Automotive operating-related cash flow in 2011.


DEARBORN, Mich., Jan. 28, 2011 – Ford Motor Company [NYSE: F] today reported 2010 full year net income of $6.6 billion, or $1.66 per share, an increase of $3.8 billion, or 80 cents per share, from 2009. This was Ford's highest net income in more than 10 years, as strong products and new investments fueled improvements in all of the company's business operations around the world.

"Our 2010 results exceeded our expectations, accelerating our transition from fixing the business fundamentals to delivering profitable growth for all," said Alan Mulally, Ford president and CEO. "We are investing in an unprecedented amount of products, technology and growth in all regions of the world."

Full year 2010 pre-tax operating profit was $8.3 billion, or $1.91 per share, an increase of $8.3 billion, or $1.90 per share, from a year ago. This increase reflects a profit in each Automotive segment led by strong performance in North America, reflecting primarily favorable volume and mix as well as favorable net pricing. Ford Credit's strong profit also contributed significantly to Ford's full year performance.

Ford made significant progress in strengthening its balance sheet, reducing Automotive debt by $14.5 billion in 2010, a 43 percent reduction. These actions will lower annualized interest expense by more than $1 billion. Ford finished the year with Automotive gross cash exceeding debt by $1.4 billion. Fourth quarter actions reduced Automotive debt by $7.3 billion, including $2.5 billion of newly announced debt reductions to pay down Ford's revolving credit facility and term loans.

Ford reported fourth quarter net income of $190 million, or 5 cents per share, a decrease of $696 million, or 20 cents per share, from the fourth quarter of 2009. This includes the negative impact of special items of $1 billion, primarily associated with a previously disclosed $960 million charge related to the completion of debt conversion offers that reduced outstanding Automotive debt by over $1.9 billion.

Ford earned a pre-tax operating profit of $1.3 billion, or 30 cents per share, in the fourth quarter, marking the sixth consecutive quarter of pre-tax operating profit. This is a decrease of $322 million, or 13 cents per share, from the fourth quarter of 2009.

Fourth quarter Automotive pre-tax operating profit was $741 million, a decrease of $173 million from a year ago. Fourth quarter Financial Services pre-tax operating profit was $552 million, a decrease of $149 million from a year ago, which includes a pre-tax operating profit of $572 million for Ford Credit.

North America posted a fourth quarter pre-tax operating profit of $670 million, a $59 million increase compared with 2009. Full year North America pre-tax operating profit was $5.4 billion, an improvement of more than $6 billion from a year ago. South America, Europe and Asia Pacific Africa also reported full year pre-tax operating profits for 2010.

As a result of Ford's 2010 financial performance, the company will pay profit sharing to approximately 40,600 eligible U.S. hourly employees. The average amount is expected to be approximately $5,000 per eligible full-time employee.

Ford's fourth quarter worldwide revenue was $32.5 billion, an increase of $1.6 billion compared with the same period a year ago, excluding Volvo from 2009. Ford reported full year revenue of $120.9 billion, an increase of $17 billion from a year ago, excluding Volvo from 2009.

Ford generated positive Automotive operating-related cash flow of $1 billion in the fourth quarter and $4.4 billion in the full year, an improvement of $5.2 billion from full year 2009.

Ford finished the year with Automotive gross cash of $20.5 billion and total Automotive debt of $19.1 billion. Automotive gross cash was down $3.3 billion from the end of the third quarter as a result of significant debt reduction actions. As of Dec. 31, 2010, total Automotive liquidity was $27.9 billion, including available credit lines.

"The progress that we made improving our core Automotive business has allowed us to strengthen significantly the balance sheet in 2010, and this will remain a key area of focus for us in 2011," said Lewis Booth, Ford executive vice president and chief financial officer. "We continue to manage the business for long term profitable growth."

FOURTH QUARTER AND FULL YEAR 2010 HIGHLIGHTS

* Announced $850 million in future investments for Michigan-based engineering and manufacturing, leading to 1,200 jobs through 2013
* Announced $600 million investment in Louisville Assembly and additional 1,800 jobs
* Announced $630 million investment in Kocaeli, Turkey, for future Transit production
* Launched 2011 F-150 lineup with completely new fuel-efficient engines
* Unveiled all-new global Ford Ranger at the Australian International Motor Show
* 2011 Explorer awarded North American Truck of the Year at the North American International Auto Show
* New Figo won Society of India Auto Manufacturers' 2011 Indian Car of the Year
* The redesigned Explorer and new Fiesta earned IIHS Top Safety Picks in the U.S.; C-MAX and Grand C-MAX earned Euro NCAP five-star safety ratings
* Increased U.S. sales 15 percent in the fourth quarter. For the full year, Ford had the first back-to-back market share increase since 1993, and the largest sales percentage increase of any full-line automaker
* Ford of Canada reported an 11 percent sales increase in the fourth quarter, leading Ford of Canada to finish 2010 as best-selling automaker for the first time in more than 50 years
* Ford Brazil sales increased 24 percent in the fourth quarter, leading to a market share gain of three-tenths of a point
* European market share fell in the fourth quarter and full year as a result of Ford's decision to reduce participation selectively in low-margin business, as well as the end of the favorable effect of scrappage programs on its small car sales
* Sales increased 35 percent in Asia Pacific and Africa in the fourth quarter. In 2010, the region reported record full year sales in China and India, with 32 and 168 percent increases respectively

AUTOMOTIVE SECTOR

Total Automotive pre-tax operating profit in the fourth quarter was $741 million, a decrease of $173 million from a year ago. The decrease is more than explained by higher structural and commodity costs, aligned with guidance, as well as unfavorable volume and mix. This was offset partially by favorable net pricing. The higher structural costs, which include manufacturing, engineering, and advertising costs, largely supported product launches and growth of product plans.

Full year pre-tax operating profit was $5.3 billion, an improvement of $7.2 billion compared with a year ago, led by strong performance in North America. Each of the Automotive segments was profitable and also improved compared with a year ago.

Total vehicle wholesales in the fourth quarter were 1.4 million units, up 41,000 units from a year ago, excluding Volvo from 2009. The increase was explained primarily by higher wholesales in Asia Pacific Africa, offset partially by lower wholesales in Europe. Full year total vehicle wholesales were 5.3 million units, up 771,000 units, excluding Volvo from 2009.

Total Automotive revenue in the fourth quarter was $30.3 billion, up $2.2 billion from a year ago, excluding Volvo from 2009. Full year total Automotive revenue was $111.2 billion, up $19.7 billion from a year ago, excluding Volvo from 2009.

North America: In the fourth quarter, North America reported a pre-tax operating profit of $670 million, compared with a profit of $611 million a year ago. The increase reflects favorable net pricing, higher industry volume, favorable mix, market share improvements, and favorable exchange. These were offset partially by the non-recurrence of prior-year stock increases, higher structural costs to support product launches and growth, higher commodity costs and costs associated with the recently announced Windstar field service actions. Fourth quarter revenue was $17.2 billion, up from $15.6 billion a year ago.

For the full year, North America reported a pre-tax operating profit of $5.4 billion, compared with a loss of $639 million a year ago. The improvement primarily reflects favorable volume and mix, net pricing, and exchange, offset partially by higher structural costs to support higher volume and product launches.

South America: In the fourth quarter, South America reported a pre-tax operating profit of $281 million, compared with a profit of $369 million a year ago. The decrease was more than explained by higher commodity and structural costs, offset partially by favorable net pricing. Fourth quarter revenue was $2.8 billion, up from $2.6 billion a year ago.

For the full year, South America reported a pre-tax operating profit of $1 billion, compared with a profit of $765 million a year ago. The increase was more than explained by favorable net pricing, exchange, and mix, offset partially by higher commodity and structural costs.

Europe: In the fourth quarter, Europe reported a pre-tax operating loss of $51 million, compared with a profit of $253 million a year ago. The decline was more than explained by lower market share, higher structural costs to support product launches, higher commodity costs, and lower industry volume, offset partially by favorable exchange and mix. The lower market share primarily reflects Ford's decision to reduce participation selectively in low-margin business, as well as the end of the favorable effect of scrappage programs on its small car sales. Fourth quarter revenue was $8.1 billion, down from $8.2 billion a year ago.

Compared to Ford's most recent guidance for Europe, the fourth quarter result was lower than expected, reflecting primarily lower market share driven by actions to maintain margins.
For the full year, Ford Europe reported a pre-tax operating profit of $182 million, compared with a loss of $144 million a year ago. The improvement primarily reflects the non-recurrence of prior-year stock reductions, lower material and warranty costs, higher parts and services profits, and favorable mix. This was offset partially by lower market share and higher structural costs.

Asia Pacific Africa: In the fourth quarter, Asia Pacific Africa reported a pre-tax operating profit of
$23 million, compared with a profit of $16 million a year ago. The increase is more than explained by higher volume, offset partially by unfavorable mix. Fourth quarter revenue, which excludes sales at unconsolidated China joint ventures, was $2.2 billion, up from $1.7 billion a year ago.

For the full year, Asia Pacific Africa reported a pre-tax operating profit of $189 million, compared with a loss of $86 million a year ago. The improvement primarily reflects higher volume, and lower material, freight and warranty costs, offset partially by higher structural costs to support investment in Ford's product and growth plans, and unfavorable mix.

Other Automotive: The fourth quarter Other Automotive loss was $182 million, compared with a loss of $295 million a year ago. This improvement primarily reflects favorable fair market value adjustments related primarily to our investment in Mazda and lower net interest expense.

For the fourth quarter, the Financial Services sector reported a pre-tax operating profit of $552 million, a decline of $149 million compared with a year ago.

Ford Motor Credit Company: In the fourth quarter, Ford Credit reported a pre-tax operating profit of $572 million, compared with a profit of $714 million a year ago. The decrease reflects lower volume and the non-recurrence of lower lease depreciation expense related to lower gains as fewer leases terminated and the vehicles were sold.

For the full year, Ford Credit reported a pre-tax operating profit of $3.1 billion, compared with a profit of $2 billion a year ago. The increase reflects primarily a lower provision for credit losses and lower depreciation expense for leased vehicles related to higher auction values. These were offset partially by lower volume and the non-recurrence of net gains related to unhedged currency exposure from intercompany lending.

OUTLOOK 2011
Ford remains focused on delivering the key aspects of the One Ford plan, which are unchanged:

* Aggressively restructuring to operate profitably at the current demand and changing model mix
* Accelerating the development of new products that customers want and value
* Financing the plan and improving the balance sheet
* Working together effectively as one team, leveraging Ford's global assets

Overall, 2010 marked a pivotal year as Ford launched 24 new or redesigned vehicles in key markets around the world, including the redesigned Explorer, the new Fiesta, as well as the redesigned Edge and Lincoln MKX in North America, the redesigned C-MAX and new Grand C-MAX in Europe, and the new Figo in India. The company also announced more than $9 billion in global investments for future growth, including: $4.5 billion in North and South America; $2.9 billion in Europe; and $1.7 billion in Asia Pacific Africa.

The One Ford transformation continues in 2011 as Ford launches the new global Focus in North America, Europe and Asia Pacific Africa, as well as the Focus Electric in North America later in the year. The new global Ranger will hit markets in Asia Pacific Africa and Europe this year, and the company will continue to expand the EcoBoost family of engines by offering it in additional markets and vehicles.

Ford plans to build on its performance in 2010 with continued improvement in 2011 total company pre-tax operating profit and Automotive operating-related cash flow. On a full year basis, Ford expects each of its Automotive operations to be profitable in 2011. In addition, the Automotive operating margin in 2011 is expected to be equal to or improved from 2010.

Ford also expects solid profitability for Ford Credit in 2011, although at a lower level than 2010, reflecting primarily the non-recurrence of lease depreciation expenses and credit loss reserve reductions of the same magnitude as 2010. At year-end 2011, Ford Credit anticipates that managed receivables will be in the range of $80 billion to $85 billion. Ford Credit is projecting distributions of about $2 billion during 2011.

Ford expects U.S. full year industry volume will be in the range of 13 million to 13.5 million units and, for the 19 markets Ford tracks in Europe in the range of 14.5 million to 15.5 million units, including medium and heavy trucks.

The company expects its full year U.S. total market share and its share of the U.S. retail market as well as European market share to be equal to or improved from 2010.

Full year Automotive structural costs are expected to be higher, as the company increases production to meet demand and makes further investments in new products, technology and growth. Commodity costs also are expected to be higher this year, reflecting increased global demand.

Ford expects capital expenditures in the range of $5 billion to $5.5 billion, as the company continues to invest in its product and growth plans.

"We expect continued improvement in 2011, driven primarily by our growing product strength, a gradually strengthening global economy and an unrelenting focus on improving the competitiveness of all of our operations," said Mulally. "We are delivering on our commitments to serve our global customers with a best-in-class full family of Ford products and delivering profitable growth for all associated with Ford."

[vztrt]

http://www.caradvice.com.au/101411/f...rofit-in-2010/

Ford Motor Co records $US6.6 billion profit in 2010
By Tim Beissmann | January 31st, 2011

Ford Motor Company recorded a $US6.6 billion profit in 2010 and reduced its total debt by more than $US14 billion.

The financial result was Ford’s best in more than a decade. The brand now has $US20.5 billion in gross cash on hand and a $US19.1 billion debt.

Ford’s debt, which it took on board before the global financial crisis in an attempt to protect itself fiscally, decreased 43 percent in 2010, down from $US33.6 billion to $US19.1 billion.

Fourth quarter results were down $US696 million from 2009 to $US190 million in 2010, although that included a $US960 million debt repayment which helped reduce the company’s automotive debt by $US1.9 billion.

Ford Motor Co President and CEO, Alan Mulally, said the results were beyond Ford’s estimates and would be followed by continued growth in 2011.

“Our 2010 results exceeded our expectations, accelerating our transition from fixing the business fundamentals to delivering profitable growth for all,” Mr Mulally said.

“We are investing in an unprecedented amount of products, technology and growth in all regions of the world.

“We expect continued improvement in 2011, driven primarily by our growing product strength, a gradually strengthening global economy and an unrelenting focus on improving the competitiveness of all of our operations.”

In 2010, Ford launched 24 new or significantly redesigned vehicles around the world and announced more than $US9 billion in global investments, including $US4.5 billion in North and South America, $US2.9 billion in Europe and $US1.7 billion in Asia Pacific Africa.

It announced a number of future investment programs, including around $US2.1 billion for plants in Michigan, Louisville and Turkey, leading directly to the addition of more than 3000 employees to its ranks.

Ford North America’s full year pre-tax profit increased from a loss of $US639 million in 2009 to $US5.4 billion in 2010.

In Europe, despite sales declining 23 percent in the fourth quarter, full year pre-tax operating profit increased from a $US144 million loss to a $US182 million gain, while Ford Asia Pacific Africa also went from $US86 million in the red to $US189 million in the black.

Ford says 2011 milestones will include the debut of the Focus Electric in North America later in the year, as well as the launch of the Australian-engineered Ranger in Asia Pacific Africa and Europe and the expansion of the EcoBoost engine family across the global market.

[vztrt]

Ford profit soars to $8.3 billion

http://www.goauto.com.au/mellor/mell...25782A000B2F87

Blue Oval hands out worker bonuses after Ford makes biggest profit in 10 years

1 February 2011

By RON HAMMERTON

FORD Motor Company has announced its biggest profit in 10 years, with operating profit rising from little better than break even in 2009 to $8.3 billion in 2010.

At the same time, the healthiest of the Detroit ‘big three’ motor companies slashed its debt by $14.5 billion or 43 per cent, while also announcing bonuses averaging $5000 for all 40,000 Ford full-time employees in the United States.

Cross-town rival Chrysler Group also promised $750 bonuses to employees, even though it recorded a full-year net loss of $693 million, weighed down by more than $1.23 billion in interest charges on loans. However, the result was a vast improvement on the $3.8 billion loss the previous year.

Ford’s employee bonuses do not apply to Ford’s Australian workforce, as subsidiaries such as Ford Australia set their own ‘merit increase’ bonus according to local performance.

Ford’s global revenue rose $17 billion, to $120.9 billion – a 16.3 per cent increase. Net income was $6.6 billion – a $3.8 billion increase from a year ago.

Vehicle sales climbed to 5.3 million vehicles, up 771,000 units on 2009, pushing automotive revenue to $111.2 billion, up $19.7 billion on a year ago.

Ford president and CEO Alan Mulally said the 2010 results exceeded Ford’s expectations, accelerating the company’s transition from “fixing the business fundamentals to delivering profitable growth for all”.

“We are investing in an unprecedented amount of products, technology and growth in all regions of the world,” he said.

Last year, the operating profit was a meagre $38 million, but that broke a three year losing streak during which Ford racked up losses totalling $30 billion.

Ford’s 2010 profit would have been even bigger except for a $960 million charge in the final quarter, apparently to complete debt conversion offers.

The attack on debt in 2010 has slashed the company interest bill by $1 billion a year, helping the company’s automotive operation to end 2010 with $20.5 million in gross cash.

In Ford’s North American heartland, the full-year pre-tax profit was $5.4 billion, compared with a $600 million loss in 2009.

In the Asia Pacific Africa region, which includes Australia, Ford turned an $86 million pre-tax loss in 2009 to a $189 million profit in 2010 on sales of $2.2 billion, up from $1.7 billion the previous year.

Ford of Europe managed to eke out a profit increase, with the pre-tax result climbing from $144 million in 2009 to $182 million in 2010.

However, fourth quarter revenue and profit slipped on lower sales and smaller market share as European governments withdrew sales subsidies.

Ford’s long-time cash cow, Ford Credit, recorded a 50 per cent increase in global profit, up from $2 billion to $3.1 billion last year.

Ford’s chiefs have promised more of the same in 2011, with its global Focus small car rollout continuing in markets such as North America and Australia, as well as the launch of the new Australian-designed, Thai-built Ford Ranger.

“We expect continued improvement in 2011, driven primarily by our growing product strength, a gradually strengthening global economy and an unrelenting focus on improving the competitiveness of all of our operations,” said Mr Mulally said.

“We are delivering on our commitments to serve our global customers with a best-in-class full family of Ford products and delivering profitable growth for all associated with Ford.”

[a_misfit]

link to article

Ford Canada sees best January since 2000, Chrysler sales also improve
By The Canadian Press

TORONTO - Ford Canada has reported its best January sales since 2000 and competitor Chrysler Canada also saw sales improve, signalling that momentum is building as the auto industry slowly recovers from recession.

The automaker said Tuesday that January sales grew 24 per cent to 14,324 vehicles compared to 11,553 last year. January also marks its 20th consecutive month of year-over-year retail sales gains.

Overall car sales grew 19 per cent, while truck sales were up 25 per cent.

Sales of the Ford Explorer increased 45 per cent, while improved sales of the Ford Focus, Ford Escape and Ford F-Series also helped boost revenue, the company said.

"For 2011, we're expecting moderate industry growth of about two per cent," said David Mondragon, president and CEO, of Ford Canada said in a release.

Last month's figures come after the world's biggest automakers reported better-than-expected full-year sales for 2010.

Meanwhile, Chrysler Canada reported Tuesday that January sales grew 14 per cent year over year, its 14th consecutive month of sales growth.

Chrysler Canada said it sold 13,587 vehicles last month, compared to 11,940 a year earlier.

The Ram, Grand Caravan and Dodge Journey set records for January sales, a pace that is on track to beat record sales seen in 2010, the automaker said.

"We gained more market share than any other manufacturer in 2010 and it's good to see the momentum has carried over into 2011," said Reid Bigland, president and CEO of Chrysler Canada.

Ford and Chrysler were the first automakers to report January sales Tuesday.

Although only comparison to Jan 2010 when things weren't as good?