Ford proudly announced their net income for third quarter 2010 posting a profit of $1.7 Billion, which is the best since 1997 and a $690 million improvement from third quarter 2009. So they’ve announced immediate actions to reduce the remaining $3.6 billion of debt owed to the VEBA retiree health care trust. Ford expects to clear that out by the year end. Ford ended the quarter with $23.8 billion of Automotive gross cash and total liquidity of $29.4 billion. Automotive operating-related cash flow was $900 million positive.
“This was another strong quarter and we continue to gain momentum with our One Ford plan,” said Ford President and CEO Alan Mulally. “Delivering world class products and aggressively restructuring our business has enabled us to profitably grow even at low industry volumes in key regions.
“The key drivers for improvement in 2011 will be our growing product strength, a gradually strengthening economy and an unrelenting focus on improving the competitiveness of all our operations,” Mulally added.
THIRD QUARTER 2010 HIGHLIGHTS
- Announced plan with joint venture partners in China to invest $500 million for a new engine plant in Chongqing that will more than double capacity
- Announced Ford and Mazda will invest $350 million in the AutoAlliance Thailand joint venture compact pickup plant in Thailand
- Announced plan to launch eight new vehicles in India by mid-decade and export Ford Figo from India to 50 markets
- As a result of competitive agreements at several U.S. plants, Ford is bringing in-house approximately 2,000 hourly jobs
- Completed sale of Volvo Car Corporation to Zhejiang Geely Holding Group as the company continues to implement its One Ford plan
- Continued actions to reduce debt by paying down $2 billion of the drawn amount of the revolving credit line
- Revealed the full family of Focus body styles at the Paris Motor Show, including the global Focus ST, and SYNC for Europe. The new Focus will roll out in North America, Europe and Asia Pacific Africa starting next year
- The new Ford Edge and Lincoln MKX went on sale in North America with MyFord Touch and MyLincoln Touch technology
- Launched sales of the Fiesta in Thailand in September as Ford continued introducing the vehicle across Asia and the Americas
- Unveiled reinvented Explorer SUV with more than 30 percent fuel economy improvement over current model. Explorer will go on sale in North America later this year
- Announced new family of F-150 powertrains that will deliver improved fuel economy and capability
- Launched sale of all-new C-MAX and freshened Mondeo in Europe
- 2010 U.S. model lineup earned eight Top Safety Picks from the Insurance Institute for Highway Safety. Ford has the most Top Safety Picks of any automaker
- Reported a 9 percent sales increase in the U.S. and gained 1.3 percentage points of market share, including strong performances from F-Series, Taurus, Fiesta and Edge
- Ford of Canada continued to maintain leadership in the market, posting a 2.3 percentage point market share increase and its best September performance in more than 30 years
- Posted a 28 percent sales increase in Asia Pacific Africa, including a 14 percent increase in China led by Fiesta demand and a 190 percent increase in India led by sales of the new Ford Figo
Financial Results Summary+ Third Quarter First Nine Months 2009 2010 B/(W) 2009 2009 2010 B/(W) 2009 Wholesales (000) ++ 1,238 1,253 15 3,418 3,924 506 – Memo: Excl. Volvo in 2009 (000) 91 730 Revenue (Bils.) ++ $ 30.3 $ 29.0 $ (1.3) $ 81.5 $ 88.4 $ 6.9 – Memo: Excl. Volvo in 2009 (Bils.) 1.7 15.4 Operating results Pre-tax results (Mils.) ++ $ 1,002 $ 2,055 $ 1,053 $ (1,577) $ 7,007 $ 8,584 After-tax results (Mils.) +++ 871 1,912 1,041 (1,560) 6,377 7,937 Earnings per share +++ 0.26 0.48 0.22 (0.54) 1.61 2.15 Special items pre-tax (Mils.) $ 110 $ (168) $ (278) $ 3,268 $ (138) $ (3,406) Net income / (loss) attributable to Ford After-tax results (Mils.) $ 997 $ 1,687 $ 690 $ 1,831 $ 6,371 $ 4,540 Earnings per share 0.29 0.43 0.14 0.61 1.61 1.00 Automotive gross cash (Bils.) $ 23.2 $ 23.8 $ 0.6 $ 23.2 $ 23.8 $ 0.6
