January 27, 2012
In this Blue Oval Connect Weekly Briefing…
- Export & Growth Posts Record Results, Looks to Future
- Ford to Triple EcoBoost Vehicle Production Capacity in 2012
- Video Corner: Ford Racing NASCAR Operations Manager, Andy Slankard
- Outside Voices: (Marketing Week) Ford Looks to Position as Technology Leader
Ford Motor Company 2011 Fourth-Quarter and Year-End Financial Results
A Note from President and CEO Alan Mulally
This morning, we announced our 10th consecutive quarterly pre-tax operating profit. It reflects a solid performance despite the challenging environment. Our track record for making continued progress in delivering great products, investing for global growth, building a strong business and providing profitable growth for all Ford stakeholders is evident in these results.
Congratulations to everyone for continuing to focus on our plan and taking the decisive action that will increase our competitiveness and allow for long-term growth.
It is clear that we have both challenges and opportunities ahead. It also is so exciting to think of what lies ahead, as we have only just begun to realize the benefits of our plan – especially the full potential of the global scale and operating margin benefits inherent in the One Ford plan, which is unchanged:
- Aggressively restructure to operate profitably at the current demand and changing model mix
- Accelerate the development of new products that customers want and value
- Finance the plan and improve the balance sheet
- Work together effectively as one team, leveraging Ford’s global assets
It is important for all of us to read the attached news release and understand the progress we are making against our plan and our outlook for the future. We will meet with financial analysts and representatives of the news media throughout the day to discuss this information and answer questions.
One Team. One Plan. One Goal. One Ford.
Congratulations and thank you!!
Alan Mulally
President and CEO
Ford Motor Company
Below is the company's press release regarding Ford Motor Company's 2011 fourth quarter financial results.
Ford Posts 2011 Pre-Tax Operating Profit of $8.8 Billion; One-Time Special Items Contribute to $20.2 Billion Net Income
DEARBORN, Mich., Jan. 27,2012 – Ford Motor Company [NYSE: F] today reported 2011 full year pre-tax operating profit of $8.8 billion, an increase of $463 million from a year ago, as strong performance in North America and Ford Credit offset challenges in other parts of the world. This marks the company’s third year in a row of improving annual operating profits.
"We delivered strong results for the full year as we continued to serve our customers around the world with best-in-class vehicles and make progress toward our mid-decade goals," said Alan Mulally, Ford president and CEO.
"Despite the continued uncertainty in the external environment, the strength of our North American and Ford Credit operations allows us to continue to invest for future growth and develop outstanding products with segment-leading quality, fuel efficiency, safety, smart design and value. "
Full year 2011 net income was $20.2 billion, or $4.94 per share, an increase of $13.7 billion, or $3.28 per share, from a year ago. The results include a favorable one-time, non-cash special item of $12.4 billion for the release of almost all of the valuation allowance against the company’s net deferred tax assets.
Fourth quarter 2011 pre-tax operating profit was $1.1 billion, or 20 cents per share, a decrease of $189 million from fourth quarter 2010. Ford has now posted 10 consecutive quarters of pre-tax operating profit, as the company benefited from strong volume and revenue across its global product line.
Ford reported fourth quarter net income of $13.6 billion, or $3.40 per share, an increase of $13.4 billion, or $3.35 per share, from the fourth quarter of 2010. This includes the favorable impact related to releasing $12.4 billion of the valuation allowance. Ford began to record a valuation allowance against net deferred tax assets in the third quarter of 2006, reflecting large cumulative losses incurred, as well as its financial outlook at the time. Consistent delivery over the past few years of strong improvement in the company’s business results now supports the release of almost all of the valuation allowance.
Fourth quarter net income also was affected by a favorable special item of $401 million related to the sale of Ford’s Russian operations to the newly created FordSollers joint venture, which began operations on Oct. 1, 2011.
As a result of Ford’s 2011 financial performance, Ford will make profit sharing payments to approximately 41,600 eligible U.S. hourly employees. In accordance with the formula in the UAW-Ford collective bargaining agreement, Ford’s North American pre-tax profits of $6.2 billion will generate approximately $6,200 per eligible employee on a full year basis. Based on first-half 2011 results, the formula generated approximately $3,750 per employee, which was distributed in December 2011. For the second half of 2011, the formula generated approximately $2,450 per employee, which is planned to be distributed in March. Individual profit sharing payments will be higher or lower based on employee compensated hours.
Ford generated positive Automotive operating-related cash flow of $700 million in the fourth quarter and $5.6 billion in the full year, an improvement of $1.2 billion from full year 2010.
Ford finished the year with Automotive gross cash of $22.9 billion, compared with Automotive gross cash of $20.8 billion as of Sept. 30, 2011, and $20.5 billion as of Dec. 31, 2010. Ford had total Automotive debt of $13.1 billion as of Dec. 31, 2011, compared with total Automotive debt of $12.7 billion as of Sept. 30, 2011, and $19.1 billion as of Dec. 31, 2010. Total Automotive liquidity at year end 2011 was $32.4 billion, including all available credit lines.
As part of Ford’s long-term strategy to reduce risk in its funded pension plans, the company expects to make cash contributions to its funded pension plans in 2012 of about $3.5 billion globally, including discretionary contributions to its U.S. plans of about $2 billion.
"2011 marked a milestone year in our work to strengthen our balance sheet. We increased Automotive cash, reduced debt and improved liquidity, clearing the way for us to resume paying a quarterly dividend, " said Lewis Booth, Ford executive vice president and chief financial officer. "We are building on this strong foundation in 2012 and taking actions when appropriate to strengthen further our balance sheet. "
To read the full press release, click here.
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Export & Growth Posts Record Results, Looks to Future
Ford Export & Growth (E&G) not only surpassed expectations in 2011 it shattered them, setting a new all-time record for annual sales.
To read the full article, click here.
All-New Ford Escape Gives Drivers Quieter Ride Thanks in Part to Mirror That 'Sees' Sound
When Ford engineers sought out innovative ways to reduce noise in the all-new Ford Escape, they looked in the mirror.
To read the full article, click here
New 2013 Ford Fusion NASCAR Sprint Cup Car Brings the 'Stock Car' Back to NASCAR
The 2013 Ford Fusion NASCAR Sprint Cup car, unveiled as part of the Charlotte Motor Speedway Media Tour, was worked on by Ford designers in an effort to bring brand identity back to the sport.
To read the full article, click here
Ford to Triple EcoBoost Vehicle Production Capacity in 2012
Now that record sales of 127,883 EcoBoost™-equipped vehicles in 2011 are on the books, Ford aims to more than triple production capacity of cars, utilities and trucks using this fuel-efficient technology in 2012.
To read the full article, click here.
Ford Tractors Help with War Efforts in Europe
On Jan. 27, 1917, the first Fordson Tractor was shipped from Detroit to Manchester, England. The British government requested the production of a number of tractors to help cultivate urgently needed crops to counteract the food blockades during World War I.
To read the full article, click here.
Ford Racing NASCAR Operations Manager, Andy Slankard
Andy Slankard explains how NASCAR is evolving. Click here to view video.
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Sue Cischke Talks Ford, Industry at Washington D.C. Auto Show
Ford Group Vice President Sue Cischke is interviewed at the Washington D.C. Auto Show. Click here to view video.
Ford Looks to Position as Technology Leader
(Marketing Week) Ford is launching a global initiative that it hopes can position it as a leader in providing accessible in-car technology and engineering excellence that make a real difference to customers’ experience. To read the full article, click here.
Ford's China Sales Hit Overdrive, Stock Rolling to $14
(Forbes) While the overall Chinese automotive market grew by only 2.5 percent in 2011, Ford managed to grow its sales by 7 percent to 519,390 units. To read the full article, click here.
GM defends Volt as Congress asks questions about battery fires
(Detroit Free Press) With newspaper ads, TV spots and its chairman testifying candidly to Congress, General Motors began Wednesday to undo any damage done to the Chevrolet Volt's reputation after battery fires threatened to turn the iconic hybrid car into a political football. To read the full article, click here.
Fiat-Chrysler in talks to produce Jeeps in China
(The Detroit News) The Fiat-Chrysler group is in intense negotiations with the Guangzhou Automobile Group on a possible joint venture to produce Jeeps in China, for the Chinese market. To read the full article, click here.
More Proof That Toyota Faces a Tough Climb Back
(Forbes) Toyota would just as soon forget 2011. It lost the crown of the world’s biggest carmaker to General Motors last year, and its factories suffered, too. To read the full article, click here. |
