Ford posts US$454 million profit for 2009
February 3, 2010 by Tim Beissmann
With little fuss or fanfare, Ford Motor Co last week announced that it recorded a before-tax operating profit of US$454 million (AUD$512 million) for 2009.
That figure is a significant turnaround from the US$6.9 billion ($7.8 billion) loss of 2008.
Its 2009 net profit of US$2.7 billion ($3.0 billion) ended three years of consecutive losses, the worst of those US$14.8 billion ($16.7 billion) in 2008.
Ford CEO, Alan Mulally, said the results were achieved through careful yet aggressive planning.
“During the worst economic recession in 30 or 40 years … because of the strength of the plan we put in place a few years ago, we were not only able to survive but also to create a foundation that is delivering now profitable growth during that year.”
The 2009 results were helped by Ford reducing its structural costs by US$5.5 billion (US$1.1 billion more than its goal) as well as an increased market share throughout Europe and North and South America in a gloomy sales environment.
Fourth quarter net income rose from a US$5.9 billion loss in 2008 to a US$868 million ($978 million) gain, while revenue was also up US$6.4 billion to US$35.4 billion ($39.9 billion) in 2009.
Compared to the industry average of a 21 percent decline, Ford’s US sales were down only 15.4 percent in 2009.
Expecting to be globally profitable this year and “solidly profitable” in 2011, Ford US is getting away to a good start by ramping up its first quarter production in North America by 20,000 vehicles to 570,000.
But Ford CFO, Lewis Booth, admitted there is still plenty of work to be done to make the company truly competitive again.
“We know we have some work to do to improve our balance sheet. I don’t feel anything other than a sense of great urgency when it comes to improving the business.
“We know that nobody is guaranteed a future,” Mr Booth said.
Ford borrowed more than US$23 billion ($25.9 billion) in 2006, helping it to avoid the fates of General Motors and Chrysler. Ford paid US$1.5 billion ($1.7 billion) in interest in 2009.
(with The New York Times)
Tags: Ford Profits
They could have got a young female model in a bikini to lean against the Taurus, but naa, an old bloke in a suit will be just fine. haha.
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It’s good news that they are posting a profit again though!
Haha, you know that the old bloke in the suit is only Alan Mulally right?
You know, CEO of Ford?
It is pretty good to see that they’re in profit again, but they are still losing money from making cars, the last quarter was only a profit due to asset revaluations and that their financing branch is making a killing.
They’re not out of the woods yet, but atleast they’re heading in the right direction.
Being Alan Mullaly doesnt suddenly turn him into a bikini wearing female.
Im pretty sure Martin would have known who he was or at least known him to be someone of significance
I didn’t know who specifically he was, but knew, as you said Andrew, that he was of some significance.
My point is still valid!!!
Mr Quick has a man crush on that old dude
Billion in the heading – I nearly choked. Try million.
Good on them. Starting to produce some real winners, hope it continues.
Good to see things haven’t changed here at CA like, oh, proof reading articles before publishing.
Welcome to last week…
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Only if what you’re selling is worth anything, it didn’t work out the same for GM unfortunately did it? :P
Actually to make a profit you need to sell something for more than you paid.
If I buy your $5000 telly off you for 500bucks, is that still a profit??
Quite obviously, no.
Why?? he would have made 500 bucks profit??????
I like the Tauras a lot. When I first saw it I wasn’t too all that into it but it has most certainly grown on me.
Actually I think its a worthy replacement for the Falcon, I actually think it looks better and its available with AWD. Imagine all that grunt with AWD, it would certainly out do the Commodore/ HSV.
Ummm not really, considering it weighs 2 tonne, doesn’t handle that great, and has fairly shoddy build quality when compared to the Falc. Gimmie a Falcon any day!
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Considering alot of Falcon buyers like to tow, then RWD is the way to go…
FWD Taurus would be crap.
Besides, American cars in general have crap build quality.
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Wrong thread.
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I can tell you they do know. Hence why you are negative scored. Most people in here have seen it on other sites.
I have been saying this all along. If you make a good product, regardless of brand people wil buy it. Im not a Ford fan, but the taurus would be a nice alternative to a Falcon, as i am to proud to buy anything with a Falcon name on it.
I like the look of that Taurus. Love the color too.
Damn, should have bought Ford shares back in ‘06 :( .
How much of this so called on paper profit is from the cashed payment/deposit from Geely for the purchase of Volvo?
Wont be long its all burnt, the interest payments are alarmingly huge!
Long term i dont see Ford making solid profits, then again 5% profit in the auto industry is considered HUGE.
Good luck to them and all the other auto brands, want moire choices, not less
What about Ford Australia?