Blue Oval Connect Newswire

Blue Oval Connect Newswire: January 28, 2011

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  • Ford Reports 2010 Full Year Net Income of $6.6 Billion; Fourth Quarter Net Income of $190 Million
  • Ford Accelerates Intelligent Vehicle Research, Creating 'Talking' Vehicles to Make Roads Safer
  • Ford Blends Math, Creative Thinking, Computing Power to Bring Superior Shift Quality to Focus
  • Ford Focus Electric Permanently Plugs in at Petersen Automotive Museum
  • All-New Ford Focus Features EcoMode to Help Drivers Perfect Eco-Driving Techniques
  • Video: (NBC) Parts Shortage Leads to Temporary Layoffs at Ford's DTP
  • Outside Voices: (U.S. News) Ford Fiesta and Ford Taurus Winners in Third Annual U.S. News & World Report's "Best Car for the Money" Awards

 

Financial Results
Ford Motor Company 2010 Fourth Quarter Financial Results

A note from President and CEO Alan Mulally
Today, we are announcing our financial results for the fourth quarter and full year. Clearly, 2010 was a strong year and exceeded our expectations. Together, we have accelerated our transition to profitable growth for all. By staying laser-focused on our plan, we expect 2011 will be even better.

The strong results we delivered in 2010 also allowed us to make great progress on reducing debt and strengthening our balance sheet. We are announcing that we ended 2010 with Automotive gross cash exceeding our debt by $1.4 billion, an improvement of more than $10 billion from the end of 2009.

Our fundamental plan to deliver One Ford remains 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 below news release and to understand our story. We will meet with financial analysts and members of the news media throughout the day to discuss this information and answer questions.

One Team. One Plan. One Goal. ONE Ford.


Thank you!!

Alan Mulally
Alan Mulally
President and CEO
Ford Motor Company



Below is the company's press release regarding Ford Motor Company's 2010 fourth quarter financial results.

Ford Reports 2010 Full Year Net Income of $6.6 Billion; Fourth Quarter Net Income of $190 Million
Ford Motor Company today reported 2010 full year net income of $6.6 billion, or $1.66 per share, an increase of $3.8 billion, or 80 cents per share, from 2009. This was Ford’s highest net income in more than 10 years, as strong products and new investments fueled improvements in all of the company’s business operations around the world.

"Our 2010 results exceeded our expectations, accelerating our transition from fixing the business fundamentals to delivering profitable growth for all," said Alan Mulally, Ford president and CEO. "We are investing in an unprecedented amount of products, technology and growth in all regions of the world."

Full year 2010 pre-tax operating profit was $8.3 billion, or $1.91 per share, an increase of $8.3 billion, or $1.90 per share, from a year ago. This increase reflects a profit in each Automotive segment led by strong performance in North America, reflecting primarily favorable volume and mix as well as favorable net pricing. Ford Credit’s strong profit also contributed significantly to Ford’s full year performance.

Ford made significant progress in strengthening its balance sheet, reducing Automotive debt by $14.5 billion in 2010, a 43 percent reduction. These actions will lower annualized interest expense by more than $1 billion. Ford finished the year with Automotive gross cash exceeding debt by $1.4 billion. Fourth quarter actions reduced Automotive debt by $7.3 billion, including $2.5 billion of newly announced debt reductions to pay down Ford’s revolving credit facility and term loans.

Ford reported fourth quarter net income of $190 million, or 5 cents per share, a decrease of $696 million, or 20 cents per share, from the fourth quarter of 2009. This includes the negative impact of special items of $1 billion, primarily associated with a previously disclosed $960 million charge related to the completion of debt conversion offers that reduced outstanding Automotive debt by over $1.9 billion.

Ford earned a pre-tax operating profit of $1.3 billion, or 30 cents per share, in the fourth quarter, marking the sixth consecutive quarter of pre-tax operating profit. This is a decrease of $322 million, or 13 cents per share, from the fourth quarter of 2009.

Fourth quarter Automotive pre-tax operating profit was $741 million, a decrease of $173 million from a year ago. Fourth quarter Financial Services pre-tax operating profit was $552 million, a decrease of $149 million from a year ago, which includes a pre-tax operating profit of $572 million for Ford Credit.

North America posted a fourth quarter pre-tax operating profit of $670 million, a $59 million increase compared with 2009. Full year North America pre-tax operating profit was $5.4 billion, an improvement of more than $6 billion from a year ago. South America, Europe and Asia Pacific Africa also reported full year pre-tax operating profits for 2010.

As a result of Ford’s 2010 financial performance, the company will pay profit sharing to approximately 40,600 eligible U.S. hourly employees. The average amount is expected to be approximately $5,000 per eligible full-time employee.

Ford’s fourth quarter worldwide revenue was $32.5 billion, an increase of $1.6 billion compared with the same period a year ago, excluding Volvo from 2009. Ford reported full year revenue of $120.9 billion, an increase of $17 billion from a year ago, excluding Volvo from 2009.

Ford generated positive Automotive operating-related cash flow of $1 billion in the fourth quarter and $4.4 billion in the full year, an improvement of $5.2 billion from full year 2009.

Ford finished the year with Automotive gross cash of $20.5 billion and total Automotive debt of $19.1 billion. Automotive gross cash was down $3.3 billion from the end of the third quarter as a result of significant debt reduction actions. As of Dec. 31, 2010, total Automotive liquidity was $27.9 billion, including available credit lines.

"The progress that we made improving our core Automotive business has allowed us to strengthen significantly the balance sheet in 2010, and this will remain a key area of focus for us in 2011," said Lewis Booth, Ford executive vice president and chief financial officer. "We continue to manage the business for long term profitable growth."

FOURTH QUARTER AND FULL YEAR 2010 HIGHLIGHTS

  • Announced $850 million in future investments for Michigan-based engineering and manufacturing, leading to 1,200 jobs through 2013
  • Announced $600 million investment in Louisville Assembly and additional 1,800 jobs
  • Announced $630 million investment in Kocaeli, Turkey, for future Transit production
  • Launched 2011 F-150 lineup with completely new fuel-efficient engines
  • Unveiled all-new global Ford Ranger at the Australian International Motor Show
  • 2011 Explorer awarded North American Truck of the Year at the North American International Auto Show
  • New Figo won Society of India Auto Manufacturers’ 2011 Indian Car of the Year
  • The redesigned Explorer and new Fiesta earned IIHS Top Safety Picks in the U.S.; C-MAX and Grand C-MAX earned Euro NCAP five-star safety ratings
  • Increased U.S. sales 15 percent in the fourth quarter. For the full year, Ford had the first back-to-back market share increase since 1993, and the largest sales percentage increase of any full-line automaker
  • Ford of Canada reported an 11 percent sales increase in the fourth quarter, leading Ford of Canada to finish 2010 as best-selling automaker for the first time in more than 50 years
  • Ford Brazil sales increased 24 percent in the fourth quarter, leading to a market share gain of three-tenths of a point
  • European market share fell in the fourth quarter and full year as a result of Ford's decision to reduce participation selectively in low-margin business, as well as the end of the favorable effect of scrappage programs on its small car sales
  • Sales increased 35 percent in Asia Pacific and Africa in the fourth quarter. In 2010, the region reported record full year sales in China and India, with 32 and 168 percent increases respectively

Click here to read this press release in full and see additional information, including financial tables.

 

Announcements
Umbrella Group Logo
Latest Information from Peer Support
Any Medicare Advantage policyholders wishing to switch to Medicare A, B and D Plans under Medicare's new Annual Disenrollment Period (ADP) have until Feb. 14 to file their papers. Switches between Advantage programs are not permitted under ADP.

Transition Assist (TA) one of the three companies offering information and enrollment advice that are approved by both Peer Support and Ford, will offer a seminar Feb. 3 at the Henry Ford Centennial Library starting at 10 a.m. TA's Dearborn office director, Kristin Tapley, will provide explanations of latest Medicare developments and answer questions from retirees nearing their 65th birthday and those already on Medicare

Peer Support's website, (http://www.ford-umbrella-group.org), provides updates on latest developments. Volunteers are available to answer e-mail questions sent to peer-support@ford-umbrella-group.org. Please include your phone number.

 

Top Stories
Intelligent Vehicle Research
Ford Accelerates Intelligent Vehicle Research, Creating 'Talking' Vehicles to Make Roads Safer
Ford is aggressively accelerating its commitment to wirelessly connected intelligent vehicles – known as vehicle-to-vehicle communications – becoming the first automaker to build prototype vehicles for demonstrations across the U.S., doubling its intelligent vehicle investment in 2011 and dedicating even more scientists to developing this technology.

An October National Highway Traffic Safety Administration (NHTSA) report on the potential safety benefits of vehicle-to-vehicle communications estimates that intelligent vehicles could help in as many as 4,336,000 police-reported, light-vehicle crashes annually, or approximately 81 percent of all light-vehicle crashes involving unimpaired drivers. Experts say intelligent vehicles could be on the road in five to 10 years.

To read the full article, click here.

Related Material:


2012 Ford Focus
Ford Blends Math, Creative Thinking, Computing Power to Bring Superior Shift Quality to Focus
The 2012 Ford Focus will offer up exceptional shift quality to drivers, powered in part by an inventive Ford transmission technology that has been waiting nearly 25 years for computing power to catch up to make it a reality.

Focus features the Ford PowerShift dry-clutch six-speed automatic transmission, one of the first transmissions to benefit from Torque Hole Filling (THF), a Ford-developed and patented concept and methodology conceived a quarter century ago. THF uses a combination of mathematical algorithms, computer-aided engineering (CAE) tools and transmission control technologies to fill what is commonly known as the torque hole – the slight hesitation drivers may feel during an upshift when there is a momentary drop in transmission torque output followed by a rise in torque.

To read the full article, click here.

Related Material:


 

Ford News
Ford Focus Electric
Ford Focus Electric Permanently Plugs in at Petersen Automotive Museum
You might remember seeing the bright orange Ford Focus Electric prototype running around a track and being driven by your favorite celebrities during the Green Car Challenge on "The Jay Leno Show" last year. Now, you will be able to see the same vehicle permanently plugged in at the Petersen Automotive Museum in Los Angeles.

Today, Ford officially handed the museum the keys to one of two Focus Electric prototypes used during the show's Green Car Challenge segment.

Based on the European five-door production Focus ST, the racing prototype was specifically designed for "The Jay Leno Show" and used throughout the 2010 season. Tuned to perform on a racetrack, the Focus Electric was outfitted with Recaro racing seats, a full roll cage, five-point racing harness and an eye-catching Electric Orange paint scheme.

To read the full article, click here.

EcoMode
All-New Ford Focus Features EcoMode to Help Drivers Perfect Eco-Driving Techniques
New Ford Focus owners can learn a thing or two about driving skills that can maximize their miles per gallon – and they can have a little fun in the process.

EcoMode is a handy software application aimed at helping coach customers in the art of eco-driving – and then rewards those that practice more fuel-efficient driving skills with in-car kudos displayed on the instrument cluster.

Eco-driving refers to specific on-road behaviors that can improve fuel economy, save money and reduce greenhouse gas emissions. In recent internal tests, Ford found that eco-driving skills can improve fuel economy by an average of 24 percent. The nationwide Auto Alliance-supported EcoDriving initiative further claims that if every American put eco-driving skills to work on the road and achieved just a 15 percent benefit in fuel economy, more than 22 billion gallons of gas would be saved each year.

To read the full article, click here.

 

Executive Corner
Ziad Ojakli

Ziad Ojakli
Group Vice President, Government and Community Relations
Ford Motor Company

On the heels of this week's State of the Union, we caught up with "Z" about the initiatives outlined in U.S. President Barack Obama's speech.

Q: What was your main take away from the speech?
A: We are so pleased that the president and Congress are laser-focused on jobs, the economy and how the U.S. can win. At Ford, we've focused a lot on how to be globally competitive. With our plan to add 7,000 new American jobs over the next two years, we have become a strong proof point for economic recovery in the United States. Economic proposals that I think can help Ford include the president's efforts to review regulations so they do not needlessly burden business. The president also is focused on how we can grow American exports – doubling them by 2014. As part of that effort, he asked Congress to quickly approve the U.S.-Korea FTA. Ford worked closely with the U.S. government to revise this FTA so the Korean market will be open to American-made cars and trucks.

To read the full discussion, click here.

 

Global Notes
Taubaté Plant
Ford Brazil Celebrates Production Milestone at Taubaté Plant
Ford Brazil celebrates two historic production milestones at the Taubaté plant, in Sao Paulo, surpassing the volume of 5 million engines and 4 million transmissions.

To read the full article, click here.

Ford S-MAX
Award for S-MAX
The S-MAX has been voted Large MPV of the year in the 2011 awards presented by BusinessCar, a U.K.-based publication for fleet cars and suppliers. Ford won the same title last year, although with the Galaxy.

To read the full article, click here.

Ford EcoSport
Ford Brazil: 2.3 Million Vehicles and a Decade of Great Launches
Ford recently completed over a decade of growth in the Brazilian market. From 2001 to 2010, the brand sold about 2.3 million vehicles in Brazil and recorded significant increases in participation, even with the increase in the number of competitors.

To read the full article, click here.

 

Video Corner
Shortage of Parts for the F-150
Parts Shortage Leads to Temporary Layoffs at Ford's DTP
(NBC) About 3,000 hourly and salaried workers at Ford's DTP are on temporary layoff this week, because of a shortage of parts for the F-150. Click here to view video.

 

Outside Voices
Ford Fiesta and Ford Taurus Winners in Third Annual U.S. News & World Report's "Best Car for the Money" Awards
(U.S. News) Carmakers are finally starting to get it: Shoppers want value, which means giving buyers more bang for their buck. To read the full article, click here.

Ford Mustang Boss 302 Slams Chevrolet Camaro at Barrett-Jackson
(USA Today) Put the first Ford Mustang Boss 302 up against a Chevrolet Camaro convertible Indianapolis 500 pace car and see which one brings in the most money for charity at the Barrett-Jackson Auction in Scottsdale, Ariz. Which brought in the most? To read the full article, click here.

Bill Ford Urges U-M Business Students to Rebuild State
(Detroit Free Press) Ford Executive Chairman Bill Ford delivered a direct message to business students today at the University of Michigan's Ross School of Business: Please stay in Michigan. To read the full article, click here.

Ford Recalls 525,000 Windstar Minivans
(Reuters) Ford is recalling about 525,000 older model Windstar minivans in cold-weather areas because corrosion could cause a separation of parts under the vans that might reduce steering control, company and federal government officials said on Wednesday. To read the full article, click here.

Comparison: 2013 Ford Focus Electric vs. 2011 Nissan Leaf
(Motor Trend) Not that long ago, electric-powered vehicles were little more than rolling science experiments. Everybody had one, but no one seemed to be serious about them. To read the full article, click here.

For Dan Akerson, a Magic Moment to Remake GM
(Bloomberg Businessweek) For much of the past quarter-century, senior managers at GM spent a lot of their time worrying about almost everything but their customers. To read the full article, click here.

Hyundai-Kia Takes the Battle to Ford
(Automotive World) Early indications suggest that the top-five selling vehicle groups worldwide in 2010 were Toyota, GM, Volkswagen, Ford and Hyundai. To read the full article, click here.

Vote for the 2011 Test Engineer of the Year
(Test & Measurement World) To honor the contributions made by test engineers, Test & Measurement World is presenting the eighth annual Test Engineer of the Year award. To read the full article, click here.

Toyota Recalls 1.7 Million Vehicles
(The New York Times) Toyota will fix about 1.7 million vehicles globally in two separate recalls over defective fuel lines and high-pressure fuel pumps, the Japanese automaker said Wednesday, drawing renewed attention to the quality of the company's products. To read the full article, click here.

 



FCN News Team:
Publisher: Sara Tatchio
Associate Publisher: Jenn Corney
Managing Editor: Terra Donnelly

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