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
- 2011 Plan to advance improvement of business performance for auto division's operating margin higher than 6.1%
- Ford launches Global C-platform models including EV
- Strategies for emerging countries: more aggressive investment in South America, China, India and Thailand to develop and produce global strategic vehicles
- Ford to invest a total of 1.55 billion dollars in Michigan, Kansas and Louisville plants
- Ford slips out of the largest shareholder of Mazda and sells Volvo to Geely
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 | |
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