January 31, 2012
What happens when you invest in your company and products instead of healthcare plans ….
Ford Motor Company reported 2011 full year pre-tax operating profit of $8.8 billion, an increase of $463 million from a year ago, as strong performance in North America and Ford Credit offset challenges in other parts of the world. This marks the company’s third year in a row of improving annual operating profits.
“We delivered strong results for the full year as we continued to serve our customers around the world with best-in-class vehicles and make progress toward our mid-decade goals,” said Alan Mulally, Ford president and CEO. “Despite the continued uncertainty in the external environment, the strength of our North American and Ford Credit operations allows us to continue to invest for future growth and develop outstanding products with segment-leading quality, fuel efficiency, safety, smart design and value.”
Full year 2011 net income was $20.2 billion, or $4.94 per share, an increase of $13.7 billion, or $3.28 per share, from a year ago. The results include a favorable one-time, non-cash special item of $12.4 billion for the release of almost all of the valuation allowance against the company’s net deferred tax assets.
Fourth quarter 2011 pre-tax operating profit was $1.1 billion, or 20 cents per share, a decrease of $189 million from fourth quarter 2010. Ford has now posted 10 consecutive quarters of pre-tax operating profit, as the company benefited from strong volume and revenue across its global product line.
January 25, 2012
The National Center for Public Policy Research is claiming a scalp today after Ford Motor Co. formally withdrew from the liberal U.S. Climate Action Partnership. The conservative non-profit announces today that Ford has withdrawn from the organization, which uses corporate support form management to work against shareholders’ interests by promoting a cap-and-trade framework for carbon emissions.
Ford CEO Alan Mullaly committed to reconsidering his company’s membership in USCAP after being pressed on the matter publicly at the company’s 2011 stockholder meeting and in subsequent private conversation by the National Center for Public Policy Research’s David A. Ridenour.
“We congratulate Alan Mulally not only for keeping his word to review Ford’s membership in USCAP, but for making the right decision by withdrawing. The regulations USCAP seeks would prove costly to the auto industry and jeopardize the recovery while still in its infancy,” said David Ridenour, President of the National Center for Public Policy Research. “By withdrawing from the group, Mulally demonstrated the same kind of sound judgment that enabled Ford to be the only major U.S. auto company to avoid government-sponsored bankruptcy protection.”
January 6, 2012
Ford Motor Co.’s U.S. sales rose 11 percent in 2011 thanks to strong demand for its trucks and SUVs. The company had its best December for retail sales since 2005 with 210,140 cars sold in the month, up 10 percent from the previous year, according to ABC news.
Ford sold 2.1 million vehicles last year, a sign of the industry’s continuing recovery. It was the first time the Ford brand has passed the 2 million mark since before the recession in 2007.
“It was really after the 25th of December when we really saw a pretty strong acceleration and ended the year on what really was a high note,” said Erich Merkle, Ford U.S. sales analyst in a recent Detroit Free Press article.
Strong sellers included the new Ford Explorer SUV, which more than doubled sales from 2010. The small SUV and Ranger pickup also posted big increases.
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August 2, 2010
After months of protracted negotiations, Ford has officially sold Volvo to Zhejiang Geely Holding Group Company Limited – aka Geely – for $1.8 billion.
The Chinese automaker originally included a $200 million note and the balance in cash, and today, it paid the remaining $1.3 billion to wrap up the sale, although the final sale price won’t be released until later this year and could put more cash in the pockets of FoMoCo.
Under the terms of the sale, Ford will continue to supply Volvo with everything from power-trains to stamping systems and other vehicle components for differing periods of time. Additionally, Ford and Geely have come to an agreement on intellectual property usage, with Volvo allowed to grant sub-licenses to specific systems to third parties, including Geely.
Stefan Jacoby – formerly of Volkswagen – will take the helm as the new President and Chief Executive of Volvo Cars, and under the new ownership, the automaker will continue to keep it headquarters and manufacturing centers in Sweden and Belgium.
I wonder what the Swedes think?