MoreDEARBORN, MI- Ford Motor Co. has reported second quarter 2011 net income of $2.4 billion, or 59 cents per share, a decrease of $201 million, or 2 cents per share, from second quarter 2010. This 8% decrease from a year ago is likely due to increased spending on new models and higher commodities costs.
Second quarter pre-tax 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 pre-tax 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 pre-tax 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 pre-tax 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.
Increased market share in the United States and Europe
Remained No. 1 in Canada, including best June result in 22 years
Increased sales volume by over 40 percent in Turkey and by more than 30% in Russia
Increased market share in China and ASEAN
Focus, F-150 and MKX won IIHS Top Safety Pick; Focus won Euro NCAP’s five-star rating
Lincoln named the top brand in the 2011 AutoPacific Vehicle Satisfaction Awards
Previewed 2013 Taurus at New York Auto Show
Announced plans to build 1.0-liter three-cylinder EcoBoost engine and all-new eight-speed transmission
Announced $350 million investment with joint-venture partners to build Ford’s first transmission plant in China with initial capacity of 400,000 six-speed transmissions
Announced plan to add 340 new dealerships in China by 2015
Made commitment to build next-generation small SUV in China
Announced $72 million investment to increase production capacity at the Chennai Engine Plant in India
Began production of Duratorq TDCi engine in South Africa
Announced plan to export Ranger to 148 markets from South Africa
Revealed new production plans in Europe that will enable the launch of at least 20 all-new or significantly freshened vehicles in next three years
Signed agreement for a 50-50 joint venture in Russia with Sollers to provide more products and expanded services for the market
Announced plan to triple production capacity of electrified vehicles in the U.S. to more than 100,000 by 2013
Second quarter pre-tax 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 pre-tax 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 pre-tax 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 pre-tax 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.
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