Blue Oval Connect Newswire: July 26, 2011
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Ford Motor Company 2011 Second Quarter Financial Results
A note from President and CEO Alan
We made even more progress this quarter in delivering cars, utilities and trucks that people want and value around the world, as well as investing for global growth and continuing to strengthen our balance sheet by paying down debt – all despite uncertain economic conditions. 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.
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.
One Team. One Plan. One Goal. One Ford.
Congratulations and thank you!!
Below is the company's press release regarding Ford Motor Company's 2011 second quarter financial results.
Ford Earns $2.4 Billion Net Income in Second Quarter 2011; Strengthens Foundation for Continued Global Growth
"We delivered very good second quarter results while growing the business globally and serving more customers in every region," said Alan Mulally, Ford president and CEO. "Despite an uncertain business environment, we further strengthened our balance sheet and continued to invest for the future."
Second quarter pretax operating profit was $2.9 billion, or 65 cents per share, a decrease of $64 million, or 3 cents per share, from second quarter 2010. Total Automotive results improved, offset by an anticipated reduction in Financial Services results.
For the first half of 2011, Ford earned a pretax operating profit of $5.7 billion, net income of $4.9 billion and reported Automotive operating-related cash flow of $4.5 billion. Ford continued to grow volume and revenue during the period.
Ford's second quarter net income was affected by unfavorable special items of $272 million, $177 million more than a year ago. The special items include personnel reduction actions, Mercury and other dealer-related actions in North America, and pension settlements in Belgium.
Second quarter Automotive pretax operating profit was $2.3 billion, an increase of $209 million from second quarter 2010. Second quarter Ford Credit pre-tax operating profit was $604 million, a decrease of $284 million from second quarter 2010.
North America posted a second quarter pretax operating profit of $1.9 billion. South America, Europe and Asia Pacific Africa also were profitable.
Ford's second quarter revenue was $35.5 billion, an increase of $4.2 billion from second quarter 2010. Ford generated positive Automotive operating-related cash flow of $2.3 billion in the second quarter.
Ford continued its focus on strengthening its balance sheet, with a net reduction in Automotive debt of $2.6 billion in the second quarter. The net reduction includes $2.3 billion of payments on its term loans and full repayment of the outstanding balance of $800 million on its revolving credit line. These actions were offset partially by an increase in low-cost loans to support advanced technology.
Ford ended the second quarter with $22 billion of Automotive gross cash, an increase of $700 million compared to March 31, 2011. Automotive gross cash exceeded debt by $8 billion, leading to a first-half improvement of $6.6 billion compared with the end of 2010.
Ford's Automotive liquidity totaled $32.2 billion, an increase of $4.3 billion in the first half.
"We are on track for solid results in 2011, including delivering on our guidance for improved full-year pretax operating profit and Automotive operating-related cash flow compared with last year," said Lewis Booth, Ford executive vice president and chief financial officer. "Going forward, we will continue building on this solid foundation for future investment and growth."
SECOND 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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