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Ford posts US$454 million profit for 2009

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)


 
  • Martin

    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.
    -
    It’s good news that they are posting a profit again though!

    • MrQuick

      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.

      • Andrew M

        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

        • Martin

          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!!!

          • Minnow

            Mr Quick has a man crush on that old dude

  • Simon

    Billion in the heading – I nearly choked. Try million.

  • Andronicus

    Good on them. Starting to produce some real winners, hope it continues.

  • JimboJones

    Good to see things haven’t changed here at CA like, oh, proof reading articles before publishing.

  • Steve

    Welcome to last week…

  • HyundaiSmoke

    Dear Ford,

    Good for you Ford, I like these guys!!!! I wouldnt buy from them unlsss it was an affordable diesel truck, but I like these guys.

    Wish you the best of Luck in our Global Marketshare Competition Together Ford/Lincoln/Mercury.

    Signed,

    HyundaiSmoke

    • HyundaiSmoke

      Well, and this is my way of complimenting them, becuase like Hyundai Ford tries its ass off too. I respect that!!!

  • john

    If you sell everything you own you will make a profit.

    • http://www.v8supergeek.com Luke

      Only if what you’re selling is worth anything, it didn’t work out the same for GM unfortunately did it? :P

    • Andrew M

      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??

      • Baddass

        Quite obviously, no.

        • Andrew M

          Why?? he would have made 500 bucks profit??????

  • Steve-Poyza

    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.

    • noj

      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.

      • Muse

        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!

        • noj

          How could the build quality be any worse than the Falcons? I mean seriously they aren`t the best.

          • Mikey

            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.

  • HyundaiSmoke

    SWEET!!!!!!!

    KIA Debuted Next Gen Sportage Overnight ahead of Geneva International Autoshow.

    What a beautiful piece of work.

    • Callous Aussie

      Wrong thread.

      • HyundaiSmoke

        I know, but this site doesnt know yet. This was more of a News Scoop thing.

        • Callous Aussie

          I can tell you they do know. Hence why you are negative scored. Most people in here have seen it on other sites.

  • Shak

    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.

  • Callous Aussie

    I like the look of that Taurus. Love the color too.

  • Dan

    Damn, should have bought Ford shares back in ’06 :( .

  • Nankano

    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

  • The Realist

    What about Ford Australia?