Blue Oval Connect Newswire: April 26, 2011
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Ford Motor Company 2011 First Quarter Financial Results
A note from President and CEO Alan
We have made even more progress this quarter in introducing world-class products, strengthening our core business and investing for growth globally, despite uncertain economic conditions, including the recent tragic events in Japan. Congratulations to everyone for continuing to focus on our plan and take the decisive action that will increase our competitiveness and allow for long-term growth.
Our fundamental plan to deliver One Ford is working, and it remains unchanged:
It is important for all of us to read the below 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.
Below is the company's press release regarding Ford Motor Company's 2011 first quarter financial results.
Ford Reports $2.6 Billion 2011 First Quarter Net Income as One Ford Plan Continues Strong Progress
"Our team delivered a great quarter, with solid growth and improvements in all regions," said Alan Mulally, Ford president and CEO. "We continue to accelerate our One Ford plan around the world, delivering on our commitments to serve our global customers with a full family of best-in-class vehicles and deliver profitable growth for all, despite uncertain economic conditions."
First quarter 2011 pre-tax operating profit was $2.8 billion, or 62 cents per share, an increase of $827 million, or 16 cents per share, from first quarter 2010. This increase reflects improved profits in each Automotive segment, led by a strong performance in North America and solid improvement in Europe.
First quarter Automotive pre-tax operating profit was $2.1 billion, an increase of $936 million from first quarter 2010. Ford's Automotive business is benefiting from growth in both volume and per-unit net revenue. This revenue growth, along with scale benefits from increasing volume, are driving improvements in profitability and operating margin – despite higher commodity costs and planned cost increases associated with the investments Ford is making in its products, brand and future growth. The profitability improvement also reflects Ford's stronger balance sheet through lower net interest expense.
First quarter Ford Credit pre-tax operating profit was $713 million, a decrease of $115 million from first quarter 2010, consistent with previous guidance.
North America posted a first quarter pre-tax operating profit of $1.8 billion, a $591 million increase from first quarter 2010. Europe reported a first quarter pre-tax operating profit of $293 million, an increase of $186 million from first quarter 2010. South America and Asia Pacific Africa also posted increased pre-tax operating profits.
Ford's first quarter revenue was $33.1 billion, an increase of $5 billion from first quarter 2010.
Ford generated positive Automotive operating-related cash flow of $2.2 billion in the first quarter, an improvement of $2.3 billion from first quarter 2010.
Ford also made significant progress in strengthening its balance sheet, with a net reduction in Automotive debt of $2.5 billion in the first quarter, including the redemption of all outstanding Trust Preferred Securities. Ford ended the first quarter with $21.3 billion of Automotive gross cash, an increase of $800 million compared to Dec. 31, 2010. Automotive gross cash exceeded debt by $4.7 billion, an improvement of $3.3 billion from year end 2010.
Ford took action to increase overall liquidity, including an additional $1.7 billion of capacity on its secured revolving credit facility, reflecting Ford's improved credit profile and overall credit conditions. Ford's Automotive liquidity totaled $30.7 billion, an increase of $2.8 billion from year end 2010.
"Our business is improving as we achieve growth in volume and revenue, while maintaining our focus on increasing competitiveness," said Lewis Booth, Ford executive vice president and chief financial officer. "The quarter was another encouraging step as we invest for an even stronger business for the future."
FIRST QUARTER 2011 HIGHLIGHTS
Click here to read this press release in full and see additional information, including financial tables.
FCN News Team:
Publisher: Sara Tatchio
Associate Publisher: Jenn Corney
Managing Editor: Terra Donnelly
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