Ford Posts Full Year Profit

[Wretched]

FORD POSTS FULL YEAR PROFIT FOR 2009; FOURTH QUARTER 2009 NET INCOME OF $868 MILLION; PLANS TO BE PROFITABLE IN 2010+

* Full year net income of $2.7 billion, or 86 cents per share, a $17.5 billion improvement from a year ago. Pre-tax operating profits of $454 million, a $7.3 billion improvement from a year ago++
* Fourth quarter net income of $868 million, or 25 cents per share, a $6.8 billion improvement from a year ago. Pre-tax operating profits of $1.8 billion, a $5.5 billion improvement from a year ago++
* Ford North America fourth quarter pre-tax operating profits of $707 million, a $2.6 billion improvement from a year ago++
* Reduced Automotive structural costs by $500 million compared with the fourth quarter 2008, bringing the total 2009 reduction to $5.1 billion, exceeding the target of about $4 billion
* Strong products drove full year market share gains in North America, South America and Europe as well as continued improvements in transaction prices and margins
* Ended the year with $25.5 billion of Automotive gross cash and $34.3 billion in Automotive debt
* Achieved positive Automotive operating-related cash flow of $3.1 billion for the fourth quarter. Full year Automotive operating-related cash outflow was $300 million, a $19.2 billion improvement over 2008
* Ford Credit fourth quarter pre-tax operating profits of $696 million, a $1.1 billion improvement from a year ago
* For full year 2010, Ford plans to be profitable on a pre-tax basis excluding special items, for North America, total Automotive and total company, with positive Automotive operating-related cash flow, based on its assumptions

http://media.ford.com/article_displa...ticle_id=31920

Ford chief executive officer Alan Mulally, said: "While we still face significant business environment challenges ahead, 2009 was a pivotal year for Ford and the strongest proof yet that our One Ford plan is working and that we are forging a path toward profitable growth by working together as one team, leveraging our global scale.

"In every part of the world, we are providing customers with great products, building a stronger business and contributing to a better world."

http://www.autocar.co.uk/News/NewsAr...llCars/247161/

Good news. Though this would include the Volvo and other sales, it is positive news and hopefully they can keep up the momentum. The One Ford plan could work.

[Chilliman]

Woo Hoo - that is fantastic news :

Another step closer to GRWD!

[4Vman]

Great news, im waiting for wally to dissect and discredit it now....

[Polyal]

Thats brilliant, in light of everything that is so good. I have to send this to a mate who at the Australia Day BBQ I was at was sprouting Holden propaganda.

[FalconXR6]

Kinda contradicts what the media are trying to convey doesn't it...???

[Dave_au]

Originally Posted by FalconXR6

Kinda contradicts what the media are trying to convey doesn't it...???

Not entirely, you can still post a profit but be in a truckload of debt (which is the case with Ford - they were just lucky enough to lock in their debt before the GFC).

[Chilliman]

Originally Posted by Dave_au

Not entirely, you can still post a profit but be in a truckload of debt (which is the case with Ford - they were just lucky enough to lock in their debt before the GFC).

I can see your point, but first you have to make a profit in order to pay back debt

[Elks]

Originally Posted by Dave_au

Not entirely, you can still post a profit but be in a truckload of debt (which is the case with Ford - they were just lucky enough to lock in their debt before the GFC).

Indeed. But its worth noting, that no one ever went broke making a small profit. And the difference is Ford is in business without the government bailout, unlike GM or Chrysler. So will be able to go forwards into the improving econic conditions with being hamstrung by government interference.

And im pretty sure that a major corporate restructure and locking in of billions of dollars in loans does not come about by luck.

[Airmon]

Just makes me even more dissapointed I didn't buy Ford stocks when they were at rock bottom.
Great result though. Hopefully some more positive press will come of it.

[vztrt]

Ford posts 2009 profit

http://www.goauto.com.au/mellor/mell...2576B90080168E

Blue Oval returns to profit and FoMoCo plans to stay there in 2010

29 January 2010

By MARTON PETTENDY

FORD Motor Company rebounded from losses totalling $US30 billion ($A33.6b) between 2006 and 2008 – including a record $US14.7 billion ($A16.4b) net loss in 2008 – to post a full-year pre-tax operating profit of $US454 million ($A507.5m) for 2009.

After tax, Ford made a $US8 million ($A8.94m) profit compared with a loss of $US7.3 billion ($A8.16b) in 2008.

Announced yesterday (January 28) without fanfare, the result was due in part to a fourth-quarter operating profit, after taxes, of $US1.6 billion ($A1.79b) compared with a loss of $US3.3 billion ($A3.69b) in Q4 2008.

Ford reported fourth-quarter net income of $US868 million ($A972m), compared with a net loss of $US5.9 billion ($A6.6b) in Q4 2008.

Ford, the only US car-maker not to seek government loans and file for Chapter 11 bankruptcy last year amid the slowest domestic vehicle sales for 27 years, said it planned to post an operating profit again in 2010 on a pre-tax basis excluding special items both in North America and globally.

“We're going to be profitable in 2010,” said CFO Lewis Booth.

Ford said it turned a 2009 net income of $US2.7 billion ($A3.0b), or US86 cents (A96.3 cents) per share, driven in part by favourable net pricing, structural cost reductions, net gains on debt reduction actions and strong Ford Credit results.

It was the company’s first full year of positive net income since 2005 and a $US17.5 billion ($A19.6b) improvement over 2008.

Ford Credit reported net income of $US1.3 billion ($A1.46b) in 2009, an improvement of $US2.8 billion ($A3.13b) from a net loss of $US1.5 billion ($A1.69b) a year earlier.

Ford finished the year with $US25.5 billion ($A28.57) in gross automotive cash and $34.3 billion ($A38.43b) in automotive debt.

Ford CEO Alan Mulally said in a statement that Ford still faced significant business environment challenges.

“2009 was a pivotal year for Ford and the strongest proof yet that our One Ford plan is working and that we are forging a path toward profitable growth by working together as one team, leveraging our global scale,” he said.

Ford posted its first North American market share gain last year since 1995, with a 1.0 percentage point gain bringing it to 15.5 per cent. The Ford, Mercury and Lincoln brands were up 33 per cent up in December – Ford’s best sales month since May 2008.

Ford's US sales fell 15.4 per cent in 2009 – less than the industry average decline of 21 per cent – to 10.4 million vehicles, its lowest total since 1981.

Ford will raise production in the first quarter in North America by 20,000 units to 570,000 vehicles.

“We're encouraged by our cash position,” Mr Booth said in the US yesterday. “We are also seeing the benefit of our production being ramped up again.

“We have an uncompetitive balance sheet,” Booth said. “The most important thing is to return the business to fundamental health and pay down our debt.”

[Iggypoppin']

Fords debt is, from memory, fairly well serviced and getting repaid when required. At least it's not government debt like GM and Chrysler's. Well done to ford for making a profit in uneasy times. We're on the winning team gang.

[Chopped]

Ford is on a roll, well done.

[Wally]

They are certainly doing the hard yards and making headway.

A one point pickup in market share in the US. The "special item" $4.663 Bn revenue is intriguing, I'm wondering if it is convertible notes.

http://ccbn.10kwizard.com/xml/downlo...816&format=PDF

[a_misfit]

Originally Posted by Wretched

http://media.ford.com/article_displa...ticle_id=31920



http://www.autocar.co.uk/News/NewsAr...llCars/247161/

Good news. Though this would include the Volvo and other sales, it is positive news and hopefully they can keep up the momentum. The One Ford plan could work.

I thought volvo sale was for first quarter this year which wouldn't be reported in the above. There was an agreement, but no transaction.

[vztrt]

Originally Posted by a_misfit

I thought volvo sale was for first quarter this year which wouldn't be reported in the above. There was an agreement, but no transaction.

correct, feb 8 actually.

http://www.caradvice.com.au/55079/fo...on-february-8/

[ebxr8240]

Good news..
On another front, local opinion over there is that Ford are making GOOD products..

[uranium_death]

I shall wait for the big, "BUT" from our good friends at Carsguide.

Great news with the company reading in the right direction.

[ebxr8240]

Better ... lol...

Great news with the company heading in the right direction.

[Dave_au]

Originally Posted by Elks

And im pretty sure that a major corporate restructure and locking in of billions of dollars in loans does not come about by luck.

No it was luck, Ford was able to lock in long term debt back in 2008; the appetite for lenders and liquidity in the lending market has gone since the GFC; simply put, no one is lending anymore. You would be silly to think that during this time GM and Chrysler were not making restructure attempts themselves; the exception here is that Ford sold PAG, offered nearly all of it's assets as collateral, and more importantly, had the fortune of a lot of their older debt reaching maturity.

[g220ba]

Originally Posted by Dave_au

No it was luck, Ford was able to lock in long term debt back in 2008; the appetite for lenders and liquidity in the lending market has gone since the GFC; simply put, no one is lending anymore. You would be silly to think that during this time GM and Chrysler were not making restructure attempts themselves; the exception here is that Ford sold PAG, offered nearly all of it's assets as collateral, and more importantly, had the fortune of a lot of their older debt reaching maturity.

luck or good management? seems they could forsee problems in the near future and took appropriate action.

[EgoFG]

Originally Posted by 84ltd

luck or good management? seems they could forsee problems in the near future and took appropriate action.

Absolutely ! - good management !

At approximately the same time I became concerned about the future of the financial system, and stopped contract work, and took up a permanent position (at a loss of income - but gained some job security).

I don't see it as a quirk of fate that businessmen, in the job of assessing risk, made a similar decision

[Ohio XB]

Originally Posted by Dave_au

No it was luck, Ford was able to lock in long term debt back in 2008; the appetite for lenders and liquidity in the lending market has gone since the GFC; simply put, no one is lending anymore. You would be silly to think that during this time GM and Chrysler were not making restructure attempts themselves; the exception here is that Ford sold PAG, offered nearly all of it's assets as collateral, and more importantly, had the fortune of a lot of their older debt reaching maturity.

Actually it was 2006 when Mulally mortgaged all of Ford's assets. He did so for the purpose of having enough money to restructure the company, according to his statements at the time.

Even better than the positive profit numbers are the numbers for the AMOUNT of improvement....

...a $17.5 billion improvement from a year ago.

...a $7.3 billion improvement from a year ago.

...a $6.8 billion improvement from a year ago.

...a $5.5 billion improvement from a year ago.

...a $2.6 billion improvement from a year ago.

...a $19.2 billion improvement over 2008.

...and on and on. These are incredible improvements over how things went for Ford a year ago.



Yes, hourly employees are going to get profit sharing, per the contract. We were told we would get about $450 each. That will be taxed at a rate of 41%. It's nice to see the company getting sales back in the black.


Steve

[FPV8U]

Definitely looking good for FoMoCO ATM, will be interesting to see where Ford lines up compared to GM in 4-5 years time.

[Ohio XB]

Originally Posted by FPV8U

Definitely looking good for FoMoCO ATM, will be interesting to see where Ford lines up compared to GM in 4-5 years time.

That's a very good thought. I share that as well, especially when the Ford employees are told Ford has a disadvantage compared to GM and Chrysler because of 3 or 4 differences in contract give-backs (such as no-strike clause) yet tell the media Ford has an advantage over GM and Chrysler. Good to see people working so hard, they can even talk out of both sides of their mouth at the same time.



Steve

[XR6_190]

Good stuff, It's nice to know that in a year that saw GM go bankrupt, and Chrysler merge with Fiat, Ford made a profit. Things are looking rosey.

[phillyc]

* Achieved positive Automotive operating-related cash flow of $3.1 billion for the fourth quarter. Full year Automotive operating-related cash outflow was $300 million, a $19.2 billion improvement over 2008

That is what I like. They lost cash earlier in the year, but by years end they were making solid profits making cars. This wasn't money from financial transactions. It also wasn't made from massive trimming down of excess inventory. Ford is making money from their core business.

Everything else looked terrific, but the above stood out to me.

[jpd80]

Originally Posted by phillyc

That is what I like. They lost cash earlier in the year, but by years end they were making solid profits making cars. This wasn't money from financial transactions. It also wasn't made from massive trimming down of excess inventory. Ford is making money from their core business.

Everything else looked terrific, but the above stood out to me.

And that's something the media and fans have to get into their heads,
Broadmeadows is now right sized for output.

Even though Ford only sold 31,000 Falcon sedans this year,
all of them sold for a profit and there were none left on the grass.

[TUF_302]

Excellent news!, 2010 is looking like a very great year indeed, lets hope this trend continues :

[Ohio XB]

The Fiesta hits the US market about April and the new Focus in August-September. I believe the Focus will be a game changer for Ford. It has front end styling that Americans do NOT expect from Ford, and it looks pretty trendy.


Steve

[phillyc]

Originally Posted by jpd80

And that's something the media and fans have to get into their heads,
Broadmeadows is now right sized for output.

Even though Ford only sold 31,000 Falcon sedans this year,
all of them sold for a profit and there were none left on the grass.

That is right. Total output was 55,000 in 2009 AFAIK. Approximate split was 31,000 Falcons. 14,000 Utes & 10,000 Territory.

I think a target of 60-65,000 is achievable in 2010. My projection would be 35,000 Falcons, 12,000 Utes & 15,000 Territory.