Blue Oval Connect Newswire: January 29, 2013
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Ford Motor Company 2012 Fourth-Quarter Financial Results
A Note from President and CEO Alan
Congratulations to the entire Ford team for continuing to implement our plan and taking decisive action to increase our competitiveness and deliver profitable growth. Thanks to our efforts, today we are announcing our highest fourth quarter pre-tax profit in more than a decade. These results are driven by record North American fourth quarter and full year pre-tax profit and operating margin and continued solid performance from Ford Credit.
By staying absolutely focused on our One Ford plan going forward, we will be able to continue to take advantage of opportunities and address challenges around the world. This includes continuing our growth in Asia Pacific and North America, transforming our business in Europe and introducing more new global vehicles in South America.
Our One Ford plan 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 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!
President and CEO
Ford Motor Company
Below is an excerpt of the company's press
release regarding Ford Motor Company's 2012
fourth quarter financial results. To read the full
Ford Posts Highest Fourth Quarter Pre-Tax Profit in More Than a Decade;
Full Year Pre-Tax Profit of $8 Billion and Net Income of $5.7 Billion
DEARBORN – Ford Motor Company today reported 2012 full year pre-tax profit of $8 billion on the strength of record results from North America and continued solid perfrmance from Ford Credit.
Full year pre-tax profit of $8 billion, or $1.41 per share, and net income of $5.7 billion, or $1.42 per share, were each lower than a year ago. Excluding the impact of 2011 changes in the valuation allowance against deferred tax assets, Ford fourth quarter net income was $565 million higher than 2011, while full year was $307 million lower than a year ago.
Fourth quarter pre-tax profit was $1.7 billion, or $0.31 per share, an increase of $577 million from 2011. Ford now has posted a pre-tax profit for 14 consecutive quarters. Fourth quarter net income was $1.6 billion, or $0.40 per share.
Ford generated positive Automotive operating-related cash flow of $1 billion in the fourth quarter – the 11th-consecutive quarter of positive performance – and positive Automotive operating-related cash flow of $3.4 billion for the full year. Ford ended 2012 with Automotive gross cash of $24.3 billion, exceeding debt by $10 billion and a strong liquidity position of $34.5 billion, an increase of $2.1 billion over 2011.
"The Ford team delivered strong results once again, underscoring that our One Ford plan is working," said Alan Mulally, Ford president and CEO. "We are well positioned for another strong year in 2013, as we continue our plan to serve customers in all markets around the world with a full family of vehicles – small, medium and large; cars, utilities and trucks – with the very best quality, fuel efficiency, safety, smart design and value."
As a result of Ford's 2012 financial performance, the company will make profit sharing payments to approximately 45,800 eligible U.S. hourly employees on March 14, 2013. As part of the UAW-Ford collective bargaining agreement, Ford North America pre-tax profits of $8.3 billion will generate approximately $8,300 per eligible employee on a full-year basis. Individual profit sharing payments may be higher or lower based on employee compensated hours.
As part of Ford's previously announced strategy to de-risk its pension obligations, the company made $3.4 billion in cash contributions in 2012 to its worldwide funded plans, $2.3 billion higher than 2011. This included $2 billion of discretionary contributions. In 2012, Ford settled $1.2 billion of its pension obligations as part of the voluntary lump sum payout program for salaried retirees, which began in the second half of 2012 and will continue through 2013. For 2013, cash contributions to funded plans are expected to be about $5 billion globally, including discretionary contributions of about $3.4 billion.
@Ford Online Team:
Publisher: Sara Tatchio
Associate Publisher: Jenn Corney
Managing Editor: Megan Whalen
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