Ford launch first global C-platform car Focus

Its pretax profit grows 2.8 times to $7.15 bn in 2010, thanks to booming sales in North America

2011/05/16

Booming sales in North America produce sales of $129 bn, up by 10.9%, pretax profit of $7.15 bn, up by 2.8 times

 Ford's 2010 sales volume were up by 9.2% over the previous year to 5.313 million units. Noteworthy growth was recorded as 25.2% in North America and 38.7% in Asia-Pacific and Africa. Ford posted revenues of 129 billion dollars, up by 10.9% over the previous year. This was underpinned by sales in North America at 64.4 billion dollars, up by 29.6%

 Ford posted a pretax profit of 7.15 billion dollars, up by 2.8 times (it was positive 2.6 billion dollars in 2009 owing to a special profit of 4.71 billion dollars from debt reduction). By region, pretax profits all turned to black in North America, Europe and Asia-Pacific from the red in 2009. The surplus of pretax profit in North America stood out in 5.41 billion dollars.

 From the first quarter to the third quarter, Ford posted a pretax profit of around two billion dollars every quarter, while the surplus was reduced to 0.28 billion dollars in the fourth quarter. This drop in pretax profit was attributable to declining inventory in North America and the negative results of the European division due to a decrease in sales, and costs allocated to debt reduction.

Ford's sales volume by region (wholesale)

(Units in 1000)
  Ford and Lincoln brands PAG Grand total
North America South America Europe Asia-Pacific
and Africa
2005 3,410 335 1,753 505 764 6,767
2006 3,051 381 1,846 589 730 6,597
2007 2,890 436 1,918 535 774 6,553
2008 2,329 435 1,820 464 359 5,407
2009 1,927 443 1,568 604 324 4,866
2010 2,413 489 1,573 838 - 5,313
Source:Ford 2010 Fourth Quarter and Full Year Earnings Review and 2011 Outlook (2011/1/28)
NOTES 1. Wholesale volume includes vehicles produced by Ford (including those supplied under OEM deals), and production volume of non-consolidated affiliate companies under local brands.
2. The data include sales volume of the Mercury brand vehicles, of which production was discontinued in October 2010.
3. Sales volume in North America before 2008 includes Mazda6 produced at Automotive Alliance International, but it is not included in the data after 2009.
4. PAG data after 2008 include only Volvo brand vehicles.
5. Sales volume in Asia-Pacific and Africa before 2008 includes sales volume of Ford brand vehicles by non-consolidated affiliates in China. Data after 2009 include Ford brand and Jiangling brand vehicles sold by these affiliates.
6. Volvo's 2010 sales volume was 211 K units. Total sales volume of Ford and Volvo is 5.524 million units.

Ford: Sales and pretax profit by region and division

  Sales (Dollars in billions) Pretax profit (Dollars in millions)
2009 2010 2009 2010
North America 49.7 64.4 (639) 5,409
South America 7.0 9.9 765 1,010
Europe 28.3 29.5 (144) 182
Asia-Pacific and others 5.6 7.4 (86) 189
Volvo 12.4 - (662) -
Other automotive divisions     (1,091) (1,493)
Special items   8.1 2,642 (1,151)
Total of automotive sections 103.9 119.3 785 4,146
Financial section 12.4 9.7 1,814 3,003
Ford Grand Total 116.3 129.0 2,599 7,149
Source:Ford 2010 Fourth Quarter and Full Year Earnings Review and 2011 Outlook (2011/1/28)
NOTES 1. The special item in the 2010 sales is sales of Volvo which will be sold to Geely.
2. The special items in the 2010 pretax profit are debt reduction costs of 853 million dollars, personnel cut costs of 164 million dollars, costs for discontinuing Mercury of 339 million dollars and Volvo's operating profit of 179 million dollars.
3. The special item of 2009 pretax profit includes a special profit of 4.71 billion dollars from debt reduction.
Quarterly business results
  2009 2010
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Sales
(Dollars in billions)
North America 10.0 10.7 13.4 15.6 14.1 16.9 16.2 17.2
South America 1.4 1.8 2.1 2.6 2.0 2.6 2.5 2.8
Europe 5.8 7.0 7.3 8.2 7.6 7.5 6.2 8.1
Asia-Pacific and others 1.2 1.2 1.5 1.7 1.6 1.8 1.8 2.2
Volvo 2.6 2.9 3.0 3.9
Other automotive sections
Special items 3.5 3.7 0.9 -
Total of automotive section 21.0 23.6 27.3 32.0 28.9 32.6 27.6 30.3
Financial section 3.4 3.2 3.0 2.8 2.7 2.5 2.3 2.2
Ford grand total 24.4 26.8 30.3 34.8 31.6 35.1 29.9 32.5
Pretax profit
(Dollars in millions)
North America (665) (899) 314 611 1,253 1,898 1,588 670
South America 63 86 247 369 203 285 241 281
Europe (585) 57 131 253 107 322 (196) (51)
Asia-Pacific and others (97) (27) 22 16 23 113 30 23
Volvo (249) (237) (136) (40) - - - -
Other automotive sections (430) (129) (237) (295) (391) (551) (369) (182)
Special items 453 2,795 101 (707) 125 (95) (168) (1,013)
Total of automotive sections (1,510) 1,646 442 207 1,320 1,972 1,126 (272)
Financial division (152) 595 670 701 815 875 761 552
Ford grand total (1,662) 2,241 1,112 908 2,135 2,847 1,887 280