Ford records best Q1 performance in 13 years

[roushfenway]

More good news for FoMoCo!

AAP has reported that an improving economy and new vehicles like the Ford Explorer propelled Ford Motor Co. to a $2.6 billion profit, its best first-quarter performance since 1998.

The company earned 61 cents per share from January through March, compared with 50 cents per share in the same quarter a year earlier.

The results beat Wall Street's expectations. Analysts surveyed by FactSet were forecasting earnings of $2.1 billion, or 50 cents per share.

Revenues rose 18 percent to $33.1 billion. The company was profitable in all regions, but saw strong growth in Asia, where sales rose 28 percent. Sales rose 12 percent in North America.

"Our team delivered a great quarter, with solid growth and improvements in all regions," Ford President and CEO Alan Mulally said.

The March 11 earthquake in Japan, which has hurt Japanese automakers, has had little impact on Ford so far. Chief Financial Officer Lewis Booth said the company has lost production of 12,000 to 14,000 vehicles at its Asian operations, but doesn't expect that to have a major effect on the bottom line. Three Asian assembly plants are closed this week because of parts shortages.

Rising prices of commodities like steel cost the company $300 million in the first quarter, and are expected to increase costs by up to $2 billion by the end of this year. Ford offset some of those increases by raising prices by an average of $117 per vehicle at the end of the first quarter.

Booth said Ford also continued to make progress paying off debt. The company, which took out a $23 billion loan in 2006 to revamp its operations, ended the quarter with $16.6 billion in debt, down $2.5 billion from the beginning of the year.

Ford said it now has $4.7 billion more cash than debt, an improvement of $3.3 billion from the start of this year.

[GT69]

Good stuff. Always good to see profits

[SEZ213]

Nice to see that despite commodities prices soaring, these guys are still making money.

Am curious though if this is EBITDA, EBIT or just gross profit after all expenses...

[Road Games]

Originally Posted by Sezzy

Nice to see that despite commodities prices soaring, these guys are still making money.

Am curious though if this is EBITDA, EBIT or just gross profit after all expenses...

As long as it aint BOMDAS , or BIMDAS they should be allright.....

[Grippy]

Good stuff Ford.

[Wretched]

Great news. Keep it up Ford.
This is what happens when you have a direction to head and someone that can get you there.

[phillyc]

$2.6B in Q1/2011. Ending the quarter with $4.7B more in cash than debt. That is a great start to the year!

[jpd80]

Ford's debt level is lower than it was before they mortgaged the company.

[TheInterceptor]

Fair dinkum thats great!

[Road_Warrior]

Asia Pacific Africa: In the first quarter, Asia Pacific Africa reported a pre-tax operating profit of $33 million, compared with a profit of $23 million a year ago. The increase is more than explained by lower contribution costs. Revenue in the first quarter, which excludes sales at unconsolidated China joint ventures, was $2.1 billion, up $500 million from a year ago.

[phillyc]

Longer article

http://www.businessspectator.com.au/...cument&src=rss

Reuters

DETROIT - Ford Motor Co reported its best first-quarter profit since 1998 as higher prices for redesigned vehicles including its small Fiesta more than offset pressure from spiking commodity and oil prices.

The better-than-expected profit was Ford's strongest first-quarter performance since the peak of the SUV boom and reassured investors after a disappointing fourth quarter.

The results also showed the success the No. 2 US automaker has had in getting consumers to pay more for improved quality and technology in vehicles such as the Focus compact.

Ford also said on Tuesday that it expected to ride out the disruption in parts supplies from Japan with only a minimal impact to its production in Asia, setting the automaker up to take market share from its Japanese rivals.

Ford's shares, which had slumped 15 per cent since late January, were up 2.3 per cent at $US15.90 in afternoon trading.

The stock has gained almost 10-fold from early 2009, but skeptical analysts and investors have cited higher engineering costs and disappointing results in Europe as they marked down the automaker's prospects earlier this year.

Chief Financial Officer Lewis Booth repeated that Ford expected full-year profit to rise and said the first-quarter results put the automaker on track to meet that forecast.

"This is a great start to the year," Booth told reporters at Ford's headquarters in Dearborn, Michigan.

Ford is the leading truck maker, but Chief Executive Alan Mulally has pushed for better balance with the roll-out of such cars as the Focus and Fiesta. He has repeatedly said Ford will put profit above market share in a break with the practice of US automakers in recent decades.

While Ford's first-quarter market share fell in North America, South America and Europe, its profit per vehicle in its home market rose more than 30 per cent from last year to more than $US2,700.

Higher sales prices contributed $US900 million to Ford's first-quarter pre-tax profit of $US2.8 billion. By contrast, commodity price pressure and other material cost increases represented a drag of $US700 million.

In its home market, Ford's average margins rose by $US250 per vehicle from a year earlier, Edmunds.com said.

Happy dealers

Mulally said buyers' desire for more features in cars even as they shift to smaller vehicles was helping pricing. In one example, he said heated leather seats were one of the most popular options for the Fiesta.

That success has made investors and dealers happy.

"Ford continues to get market share. We expect this trend will continue," said Channing Smith, co-manager of Capital Advisors Growth Fund, which owns Ford shares.

Mike Jackson, chief executive of AutoNation, the largest US dealer group, said product quality was a major factor.

"There is a renaissance going on with Detroit product which is the real deal." he said.

Ford was the first US automaker to report since the March earthquake in Japan, and its results signaled that General Motors Co could also take share from Toyota Motor Corp, Nissan Motor Co Ltd and Honda Motor Co, Morningstar analyst David Whiston said.

Ford's net income rose to $US2.55 billion, or 61 cents per share, from $US2.09 billion, or 50 cents per share, a year earlier. Excluding one-time items, it earned 62 cents per share, easily topping the average analyst forecast of 50 cents per share, according to Thomson Reuters I/B/E/S.

It was the seventh straight quarter of operating profit.

Revenue rose to $US33.1 billion from $US28.1 billion last year. Analysts had expected $US29.7 billion.

Mulally said results in later quarters of this year may not be as strong as those in the first quarter.

On a conference call with analysts, he said Ford was well-positioned for what he called a marked shift away from large cars and trucks to smaller, more fuel-efficient vehicles.

CFO Booth said since the March 11 Japan earthquake, Ford had lost the production of 12,000 to 14,000 vehicles in Asia, where it has shut several plants temporarily.

Any near-term production losses are likely to recover in late 2011 and into 2012, Ford said. Production in Ford's business regions outside of Asia has not yet seen much change.

For the first time, Ford disclosed its projected second-quarter global production figure of 1.46 million.

Mulally agreed that industry sales may slow during the summer, but he said used- and new-car pricing might improve as inventories tighten due to the Japan crisis.

Ford said higher commodity costs including oil and gasoline prices may limit growth for the rest of the year. It expects both commodity and operational costs excluding materials to be about $US2 billion more than last year.

J.P. Morgan analyst Himanshu Patel, in a research note, pointed to stronger-than-expected results at Ford Credit, which he called "unsustainable."

Ford Credit earned $US713 million in the first quarter on a pre-tax basis. Patel had expected $US428 million and credited stronger-than-expected performance on lease residuals.

Ford regained its footing in Europe in the first quarter, showing a pre-tax operating profit of $US293 million, up from $US107 million a year ago. In the fourth quarter, Ford had a loss of $US51 million in Europe.

The company also reduced its debt by $US2.5 billion in the quarter to $US16.6 billion by redeeming all of its outstanding preferred securities. Ford had borrowed $US23 billion in late 2006, raising investor concerns about its debt levels.

[jpd80]

Originally Posted by Road_Warrior

Asia Pacific Africa: In the first quarter, Asia Pacific Africa reported a pre-tax operating profit of $33 million, compared with a profit of $23 million a year ago. The increase is more than explained by lower contribution costs. Revenue in the first quarter, which excludes sales at unconsolidated China joint ventures, was $2.1 billion, up $500 million from a year ago.

FoA's annual revenue is around $2.2 billion, being tied in with FAPA is good for FoA, it smooths out the lumps...

[phillyc]

Go Auto article

http://www.goauto.com.au/mellor/mell...25787F0009B1F6

New models, rising sales and reduced debt deliver $2.6 billion Q1 profit at Ford

27 April 2011
By RON HAMMERTON
FORD Motor Company’s first-quarter net profit soared to $US2.6 billion ($A2.4b) – its best Q1 result in 12 years – as the Blue Oval’s product-led recovery hit top gear.

New fuel-efficient vehicles such as the Focus, Fiesta, Fusion, Edge and Explorer helped to propel Ford’s profits upwards by 22 per cent or $US466 million ($A431m) over last year’s first-quarter return and put the Dearborn-based company on track for its third consecutive year in the black.

Ford president and CEO Alan Mulally said the Ford team had delivered a great quarter, with solid growth and improvements in all regions.

“We continue to accelerate our One Ford plan around the world, delivering on our commitments to serve our global customers with a full family of best-in-class vehicles and deliver profitable growth for all, despite uncertain economic conditions,” he said.

Ford not only lifted Q1 sales revenues by $5 billion, to $33.1 billion, but slashed automotive division debt by $2.5 billion to help its cause by reducing its interest bill.

Vehicle wholesales were up 150,000 units, to 1.4 million, and the company is forecasting another lift to 1.5 million for the second quarter, putting Ford on track for annual sales of almost six million units in 2011 compared with 2010’s 5.3 million.

Left: Ford president and CEO Alan Mulally.

“We expect our annual volumes to continue to grow substantially, driven primarily by our growing product strength, a gradually strengthening global economy and an unrelenting focus on improving the competitiveness of all of our operations,” Mr Mulally said.

According to US reports, Ford not only sold more vehicles but increased each one’s average profitability in North America as the US eased out of its economic doldrums.

All of Ford’s regions recorded a pre-tax operating profit, including its two biggest – North America and Europe.

More than half of the profit – $US1.8 billion – was made by North America, where sales were up 16 per cent year on year with the introduction of a new wave of models, including the European-designed Fiesta and Focus, and a rejuvenated F-Series pick-up.

Ford of Europe also came back strongly from the global financial crisis, reporting a first quarter pre-tax operating profit of $293 million, an increase of $186 million over 2010.

The Asia Pacific Africa division, which includes Australia and China, generated revenue of $2.1 billion – up by $500 million – for a $33 million pre-tax profit.

In 2010, Ford reported a full-year profit of $8.3 billion – almost double that of cross-town rival General Motors ($4.7b) and way ahead of Chrysler’s net loss of $693 million.

The only shadow on Ford’s Q1 performance was a $115 million decline in Ford Credit’s pre-tax operating profit, to $713 million.

The decrease was blamed on lower market valuation adjustments for derivatives and lower receivables volume.

Ford estimates the full-year profit of Ford Credit will fall about $1.1 billion in 2011, but will remain in profit with distributions of about $3 billion.

[vztrt]

http://www.autoblog.com/2011/04/26/f...st-since-1998/

Ford earns $2.6B in first quarter, most since 1998

by Chris Shunk (RSS feed) on Apr 26th 2011 at 9:57AM

Ford announced its most rewarding first quarter since 1998, with $2.6 billion in earnings on global sales of $33.1 billion. The earnings are up 22 percent versus the first quarter of 2010, while sales increased by $5 billion for the quarter. This large increase in sales was the biggest driver for the overall profit, as the Dearborn, Michigan-based automaker moved 1.4 million units in Q1 2011, up 16 percent versus Q1 2010.

Most of Ford's profit came from moving vehicles here in North America, where $1.8 billion in total earnings were bolstered by improved sales and lower incentive spending. Ford also managed to eek out a $293 million profit in Europe, which posted a loss in the fourth quarter of, 2010. In all, Ford managed $2.8 billion in operating profit, and $2.1 billion of that money came from automotive operations. Ford Credit earned $713 million on the quarter.

Further good news comes on the debt front, as Ford managed to pay down its debt by $2.5 billion during Q1 while also increasing liquidity by $2.8 billion. That means Ford has a much larger cushion in the event the industry's economic situation once again takes a turn for the worse, while also paying less money in interest. Ford eliminated $1 billion in annual interest costs in 2010.

Ford's outstanding quarter took analysts by surprise, as the projections of a 50 cents-per-share profit was demolished by a 61 cents-per-share reality. As a result, Ford shares are up four percent in early Tuesday trading. Hit the jump to read Ford's official statement.

[Sources: Ford, The Detroit News | Image: Chris Shunk/AOL]

Press Release

First quarter net income was $2.6 billion, or 61 cents per share, a $466 million increase from first quarter 2010. Pre-tax operating profit was $2.8 billion, or 62 cents per share, an increase of $827 million from first quarter 2010. Ford has posted a pre-tax operating profit for seven consecutive quarters.
Automotive pre-tax operating profit was $2.1 billion for the first quarter, an increase of $936 million from first quarter 2010.
Ford Credit reported a pre-tax operating profit of $713 million for the first quarter, a decrease of $115 million from first quarter 2010.
Total Company revenue was $33.1 billion in the first quarter, up $5 billion from first quarter 2010.
Ford generated positive Automotive operating-related cash flow of $2.2 billion in the first quarter, an improvement of $2.3 billion from first quarter 2010.
Ford continued to reduce Automotive debt with an additional $2.5 billion of net debt reductions in the first quarter as a result of the redemption of all outstanding Trust Preferred Securities.
Ford ended the first quarter with Automotive gross cash of $21.3 billion, an increase of $800 million compared to the end of 2010. Ford's Automotive gross cash exceeded debt by $4.7 billion, an improvement of $3.3 billion from year end 2010.
Ford ended the first quarter with $30.7 billion in total Automotive liquidity, an increase of $2.8 billion from year end 2010.
For full year results, Ford plans to deliver continued improvement in pre-tax operating profit and Automotive operating-related cash flow compared to 2010.


DEARBORN, Mich., April 26, 2011 – Ford Motor Company [NYSE: F] today reported first quarter 2011 net income of $2.6 billion, or 61 cents per share, an increase of $466 million, or 11 cents per share, from first quarter 2010 as fuel-efficient new products, continued investment in global growth and the strengthening of Ford's core business boosted results.

"Our team delivered a great quarter, with solid growth and improvements in all regions," said Alan Mulally, Ford president and CEO. "We continue to accelerate our One Ford plan around the world, delivering on our commitments to serve our global customers with a full family of best-in-class vehicles and deliver profitable growth for all, despite uncertain economic conditions."

First quarter 2011 pre-tax operating profit was $2.8 billion, or 62 cents per share, an increase of $827 million, or 16 cents per share, from first quarter 2010. This increase reflects improved profits in each Automotive segment, led by a strong performance in North America and solid improvement in Europe.

First quarter Automotive pre-tax operating profit was $2.1 billion, an increase of $936 million from first quarter 2010. Ford's Automotive business is benefiting from growth in both volume and per-unit net revenue. This revenue growth, along with scale benefits from increasing volume, are driving improvements in profitability and operating margin – despite higher commodity costs and planned cost increases associated with the investments Ford is making in its products, brand and future growth. The profitability improvement also reflects Ford's stronger balance sheet through lower net interest expense.

First quarter Ford Credit pre-tax operating profit was $713 million, a decrease of $115 million from first quarter 2010, consistent with previous guidance.

North America posted a first quarter pre-tax operating profit of $1.8 billion, a $591 million increase from first quarter 2010. Europe reported a first quarter pre-tax operating profit of $293 million, an increase of $186 million from first quarter 2010. South America and Asia Pacific Africa also posted increased pre-tax operating profits.

Ford's first quarter revenue was $33.1 billion, an increase of $5 billion from first quarter 2010.

Ford generated positive Automotive operating-related cash flow of $2.2 billion in the first quarter, an improvement of $2.3 billion from first quarter 2010.

Ford also made significant progress in strengthening its balance sheet, with a net reduction in Automotive debt of $2.5 billion in the first quarter, including the redemption of all outstanding Trust Preferred Securities. Ford ended the first quarter with $21.3 billion of Automotive gross cash, an increase of $800 million compared to Dec. 31, 2010. Automotive gross cash exceeded debt by $4.7 billion, an improvement of $3.3 billion from year end 2010.

Ford took action to increase overall liquidity, including an additional $1.7 billion of capacity on its secured revolving credit facility, reflecting Ford's improved credit profile and overall credit conditions. Ford's Automotive liquidity totaled $30.7 billion, an increase of $2.8 billion from year end 2010.

"Our business is improving as we achieve growth in volume and revenue, while maintaining our focus on increasing competitiveness," said Lewis Booth, Ford executive vice president and chief financial officer. "The quarter was another encouraging step as we invest for an even stronger business for the future."

FIRST QUARTER 2011 HIGHLIGHTS


Completed additional debt reduction action with a $3 billion redemption of Ford's Trust Preferred Securities, while increasing liquidity by $2.8 billion
Announced investment of $400 million and retention of 3,750 full-time jobs at the Kansas City Assembly Plant for a new vehicle to be built at the facility
Signed a Memorandum of Understanding with Sollers to form a 50:50-owned JV to expand production and distribution of Ford vehicles in Russia
Posted 16% increase in U.S. sales due to strong demand for fuel-efficient products such as Fiesta, Fusion, Edge, Escape, Explorer and F-Series
Remained top-selling automaker in Canada, reporting an 8.6% year-over-year sales increase
Increased Asia Pacific Africa share to 2.4%, fueled by Fiesta, Focus, Figo and Ranger; China sales increased 18%, India up 115%
Lincoln won top spot in J.D. Power Vehicle Dependability survey
Unveiled Ford B-MAX small car and Ranger Wildtrak pickup at the 2011 Geneva Motor Show
Announced SYNC with MyFord Touch expansion to Europe in 2012
Launched EcoBoost engine technology in China with production of the 2011 Ford Mondeo at the Changan Ford Mazda Automotive plant
Fiesta became the first in its segment to earn top safety ratings in the world's largest markets -- the U.S., Europe, and China
Introduced a new Cargo truck in Brazil, representing our commitment to competitiveness in a critical segment in South America



AUTOMOTIVE SECTOR

Total Automotive pre-tax operating profit in the first quarter was $2.1 billion, an increase of $936 million from first quarter 2010. The increase is explained by favorable volume and mix and favorable net pricing, that more than offset higher contribution costs – which include material costs, warranty expense and freight and duty costs. The higher contribution costs were driven by higher commodity costs and material excluding commodities -- primarily added content, technology and features for Ford's new products. Other costs, primarily structural, increased, reflecting the impact of new product launches, investment in future growth, and higher volumes.

Total vehicle wholesales in the first quarter were 1.4 million units, up 150,000 units from first quarter 2010, as every business segment reported higher wholesales.

Total Automotive revenue in the first quarter was $31 billion, up $5.6 billion from first quarter 2010.

North America: In the first quarter, North America reported a pre-tax operating profit of $1.8 billion, compared with a profit of $1.2 billion a year ago. The increase reflects favorable volume and mix and favorable net pricing. These were offset partially by higher contribution costs, primarily material costs to support new products, as well as increases for commodities, warranty, and freight and duty. Other costs, primarily structural, to support higher volumes and new product launches, also increased. Revenue in the first quarter was $17.9 billion, up $3.8 billion from a year ago.

South America: In the first quarter, South America reported a pre-tax operating profit of $210 million, compared with a profit of $203 million a year ago. The increase reflects favorable net pricing and volume and mix, offset largely by higher costs and unfavorable exchange. Revenue in the first quarter was $2.3 billion, up $300 million from a year ago.

Europe: In the first quarter, Europe reported a pre-tax operating profit of $293 million, compared with a profit of $107 million a year ago. The increase was more than explained by favorable net pricing, favorable volume and mix, favorable exchange and higher subsidiary profits. Revenue in the first quarter was $8.7 billion, up $1 billion from a year ago.

Asia Pacific Africa: In the first quarter, Asia Pacific Africa reported a pre-tax operating profit of
$33 million, compared with a profit of $23 million a year ago. The increase is more than explained by lower contribution costs. Revenue in the first quarter, which excludes sales at unconsolidated China joint ventures, was $2.1 billion, up $500 million from a year ago.

Other Automotive: The first quarter Other Automotive loss was $249 million, compared with a loss of $391 million in first quarter 2010. This improvement primarily reflects lower net interest expense, offset partially by unfavorable changes in fair market value adjustments related primarily to Ford's investment in Mazda.

FINANCIAL SERVICES SECTOR


For the first quarter, the Financial Services sector reported a pre-tax operating profit of $706 million, a decrease of $109 million compared with first quarter 2010.

Ford Motor Credit Company: In the first quarter, Ford Credit reported a pre-tax operating profit of $713 million, compared with a profit of $828 million in first quarter 2010. The decrease is more than explained by lower market valuation adjustments to derivatives and lower receivables volume.

OUTLOOK
Ford remains focused on delivering the key aspects of the One Ford plan, which are unchanged:


Aggressively restructuring to operate profitably at the current demand and changing model mix
Accelerating the development of new products that customers want and value
Financing the plan and improving the balance sheet
Working together effectively as one team, leveraging Ford's global assets


The One Ford transformation continues in 2011 as Ford launches key products in critical markets, while maintaining a sharp focus on critical business issues, including cost competitiveness, fuel efficiency, investment in emerging markets, and continued improvement in brand health and pricing discipline.

Ford said its performance is off to a great start. Ford is on track to deliver continued improvement in full year pre-tax operating profit and Automotive operating-related cash flow compared to 2010. Based on lower expected profit at Ford Credit, increasing commodity costs, seasonal factors that tend to favor the first half of the year and higher investments and costs related to its longer-term growth and brand plans, quarterly results in the latter part of the year may not be as strong as the first quarter. As the year progresses, Ford said it will take advantage of every opportunity to further strengthen its business.

Ford expects solid profitability for Ford Credit in 2011, although at a lower level than 2010, reflecting primarily the non-recurrence of lower lease depreciation expense and credit loss reserve reductions of the same magnitude as 2010. Ford estimates the profit impact of these two items will reduce profit by about $1.1 billion in 2011 compared to 2010. Ford Credit is projecting distributions of about $3 billion during 2011.

Ford expects U.S. full year industry volume will be in the range of 13 million to 13.5 million units and, for the 19 markets Ford tracks in Europe in the range of 14.5 million to 15.5 million units, including medium and heavy trucks.

In the first quarter, the seasonally adjusted annual rate of sales was 13.4 million in the U.S., and 15.9 million units for the 19 markets Ford tracks in Europe. Despite encouraging first quarter industry levels, Ford is maintaining its present guidance for North America and Europe.

The company expects its full year U.S. total market share and its share of the U.S. retail market as well as European market share to be equal to or improved from 2010. In the first quarter, Ford's U.S. market share was 16 percent, and European market share was 8.5 percent.

In North America, Ford has increased its J.D. Power dependability ranking; however, the company is addressing some near-term issues, leading to a mixed overall quality outlook for the year.
Ford remains on track to achieve quality improvements in its international operations.

Commodity costs and structural costs each are expected to increase by about $2 billion compared with 2010. The latter is consistent with supporting higher volumes in the short term, as well as Ford's plan to grow its business, continue to strengthen its brand and improve its products. In the first quarter, Ford's structural costs increased $400 million compared to first quarter 2010, and commodity costs increased by $300 million.

Ford expects 2011 capital expenditures in the range of $5 billion to $5.5 billion. Capital spending in the first quarter was $900 million.

Ford expects total company second quarter production to be about 1.5 million units, up 12,000 units from a year ago, reflecting continued strong customer demand for its products. The forecast reflects Ford's best projection, at this time, of the impact of the events in Japan. As always, Ford's production plans remain consistent with its strategy to match supply to demand.

"Our progress toward delivering profitable growth for all will continue as we aggressively manage short term challenges and opportunities," said Mulally. "We expect our annual volumes to continue to grow substantially, driven primarily by our growing product strength, a gradually strengthening global economy and an unrelenting focus on improving the competitiveness of all of our operations."

Ford's planning assumptions and key metrics, and production volumes, are shown below:



+ The financial results discussed herein are presented on a preliminary basis; final data will be included in Ford's Quarterly Report on Form 10-Q for the period ended March 31, 2011. The following information applies to the information throughout this release:


Pre-tax operating results exclude special items unless otherwise noted.
See tables following the "Safe Harbor/Risk Factors" for the nature and amount of special items, and reconciliation of items designated as "excluding special items" to U.S. generally accepted accounting principles ("GAAP"). Also see the tables for reconciliation to GAAP of Automotive gross cash and operating-related cash flow.
Discussion of overall Automotive cost changes is measured primarily at present-year exchange and excludes special items and discontinued operations; in addition, costs that vary directly with production volume, such as material, freight, and warranty costs, are measured at present-year volume and mix.
As a result of the sale of Volvo, 2010 results for Volvo were reported as special items and excluded from wholesales, revenue and operating results.
Wholesale unit sales and production volumes include the sale or production of Ford-brand and JMC-brand vehicles by unconsolidated affiliates. JMC refers to our Chinese joint venture, Jiangling Motors Corporation. See materials supporting the April 26, 2011 conference calls at www.shareholder.ford.com for further discussion of wholesale unit volumes.

++ Excludes special items.
+++ Excludes special items and "Income/(Loss) attributable to non-controlling interests." See tables following "Safe Harbor/Risk Factors" for the nature and amount of these special items and reconciliation to GAAP.

Safe Harbor/Risk Factors

Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptions by our management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, including, without limitation:


Decline in industry sales volume, particularly in the United States or Europe, due to financial crisis, recession, geo-political events, or other factors;
Decline in market share or failure to achieve growth;
Lower-than-anticipated market acceptance of new or existing products;
An increase in or acceleration of market shift beyond our current planning assumptions from sales of trucks, medium- and large-sized utilities, or other more profitable vehicles, particularly in the United States;
An increase in fuel prices, continued volatility of fuel prices, or reduced availability of fuel;
Continued or increased price competition resulting from industry overcapacity, currency fluctuations, or other factors;
Adverse effects from the bankruptcy, insolvency, or government-funded restructuring of, change in ownership or control of, or alliances entered into by a major competitor;
Fluctuations in foreign currency exchange rates, commodity prices, and interest rates;
Economic distress of suppliers that may require us to provide substantial financial support or take other measures to ensure supplies of components and could increase our costs, affect our liquidity, or cause production constraints or disruptions;
Single-source supply of components or materials;
Labor or other constraints on our ability to maintain competitive cost structure;
Work stoppages at Ford or supplier facilities or other interruptions of production;
Substantial pension and postretirement health care and life insurance liabilities impairing our liquidity or financial condition;
Worse-than-assumed economic and demographic experience for our postretirement benefit plans (e.g., discount rates or investment returns);
Restriction on use of tax attributes from tax law "ownership change;"
The discovery of defects in vehicles resulting in delays in new model launches, recall campaigns, reputational damage, or increased warranty costs;
Increased safety, emissions, fuel economy, or other regulation resulting in higher costs, cash expenditures, and/or sales restrictions;
Unusual or significant litigation, governmental investigations or adverse publicity arising out of alleged defects in our products, perceived environmental impacts, or otherwise;
A change in our requirements for parts where we have long-term supply arrangements committing us to purchase minimum or fixed quantities of certain parts, or to pay a minimum amount to the seller ("take-or-pay" contracts);
Adverse effects on our results from a decrease in or cessation or clawback of government incentives related to investments;
Adverse effects on our operations resulting from certain geo-political or other events;
Inherent limitations of internal controls impacting financial statements and safeguarding of assets;
Substantial levels of Automotive indebtedness adversely affecting our financial condition or preventing us from fulfilling our debt obligations;
Failure of financial institutions to fulfill commitments under committed credit facilities;
A prolonged disruption of the debt and securitization markets;
Inability of Ford Credit to access debt, securitization, or derivative markets around the world at competitive rates or in sufficient amounts due to credit rating downgrades, market volatility, market disruption, regulatory requirements, or other factors;
Higher-than-expected credit losses;
Increased competition from banks or other financial institutions seeking to increase their share of financing Ford vehicles;
Collection and servicing problems related to finance receivables and net investment in operating leases;
Lower-than-anticipated residual values or higher-than-expected return volumes for leased vehicles;
Imposition of additional costs or restrictions due to the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Act") and its implementing rules and regulations;
New or increased credit, consumer, or data protection or other regulations resulting in higher costs and/or additional financing restrictions; and
Inability of Ford Credit to obtain competitive funding.


Ford cannot be certain that any expectation, forecast, or assumption made in preparing forward-looking statements will prove accurate, or that any projection will be realized. It is to be expected that there may be differences between projected and actual results. Ford's forward-looking statements speak only as of the date of initial issuance, and Ford does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise. For additional discussion of these risks, see "Item 1A . Risk Factors" of Ford's Annual Report on Form 10-K for the year ended December 31, 2010.

[vztrt]

http://theage.drive.com.au/motor-new...427-1dw41.html

Ford posts $2.4b profit
Barry Park
April 27, 2011 - 1:32PM

Ford has posted a $US2.6 billion profit for the first quarter of this year, the seventh consecutive quarter that the US car maker has run in the black.

The company has attibuted the strong result to its ability to sell more cars, and earn more money for each car sold — despite Ford having to pay more for components than in the previous year, and facing significant costs associated with rolling out new products.

According to the company results, the Australian-penned Figo light car — the company's Broadmeadows-based design team was instrumental in developing the car for the Indian market — helped boost sales in the Asia-Pacific and African markets.

No specific mention is made in the company's accounts relating to the Australian market, but first-quarter pre-tax profit for the Asia-Pacific Africa region jumped from $23 million last year to $33 million.
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Ford's investment in Japanese car maker Mazda continues to be a millstone for the company, contributing to a $249 million loss for a group of assets outside the company's core car-making business compared with a $391 million loss for the same quarter last year.

Ford says it also expects production volumes in the Asia-Pacific Africa region to fall during the second quarter, falling from 236,000 units in the first three months of the year to an expected 195,000 units in the second quarter.

The car maker — the only one of the big three to not receive a US government bailout to help it recover from the global credit crunch — last year reported a $6.6 billion profit for the financial year.

However, Ford has flagged that the remaining three quarters of this year will be tough for the company, saying they will not be as strong as the first quarter.

Rival car maker General Motors, which flirted dangerously with bankruptcy last year as the effects of the global financial crisis hit hard, is expected to announce its first-quarter result for the year next Thursday.

GM posted a $4.7 billion net profit last year after rolling many of its underperforming assets — including Swedish car maker Saab and military brand Hummer — into a separate company that will soon be wound up, although owing investors more than $30 billion.

[Road_Warrior]

Ford's investment in Japanese car maker Mazda continues to be a millstone for the company, contributing to a $249 million loss for a group of assets outside the company's core car-making business compared with a $391 million loss for the same quarter last year.

I thought Ford divested its majority stake in Mazda back in 2009

[Wretched]

Originally Posted by Road_Warrior

I thought Ford divested its majority stake in Mazda back in 2009

They reduced to 11% from 33% with plans late last year to reduce that to 3.5% (still biggest shareholder).
Unsure if the reduction to 3.5% has been done yet.

[Eaturbo]

Can anybody really appreciate Ford President and CEO Alan Mulally's performance. Surely he is the single most successfull CEO of a car company in recent years. Maybe someone should track down a contact for him and thank him for keeping the company alive. Thinking about it I might track down his email address and send him an email.

[SEZ213]

Found this one on line, seems interesting...

http://www.smh.com.au/business/world...427-1dwk9.html

Ford's focus on small cars drives a transformation
Nick Bunkley
April 28, 2011

Value added . . . and profits up.

FORD has reported its best first-quarter earnings since 1998, even as it shifts sales to smaller, more fuel-efficient cars.

The car giant earned $US2.55 billion ($2.35 billion) in the quarter, up 22 per cent on the previous corresponding period, the strongest evidence yet of its transformation from a company dependent on big trucks into one that can generate significant profit selling cars of all sizes.

The old Ford lost money on many of its cars, counting on sales of trucks to stay in the black. Today's Ford, however, is able to persuade many of the drivers who buy its subcompact cars to save on petrol to also spend thousands of dollars on amenities such as heated leather seats. As a result, Ford made a profit of about $US1519 on each vehicle, an increase of 59 per cent, even though revenue was up only 9 per cent to $US22,096 a vehicle.

''They have much more competitive products on the small and midsize platforms than they ever have before,'' said John Hoffecker, managing director of the consulting firm AlixPartners. ''What they've been able to do is not treat the small cars as just economy vehicles. They're putting on the kind of features and options that people aren't used to seeing on cars of that size.''

Ford's pre-tax earnings in North America rose 50 per cent, to $US1.8 billion. Globally, revenue rose 18 per cent to $US33.1 billion.

Efforts to reduce debt also have cut interest payments. Ford eliminated $US2.5 billion in debt in the first quarter and said cash reserves now exceed debt by $US4.7 billion.

Ford's chief financial officer, Lewis Booth, said parts shortages related to the earthquake in Japan have cut production in Ford's Asia-Pacific region as much as 14,000 vehicles but that he expected the company to be minimally affected.

It may have already been posted, but I couldn't find it... :(

[FPV8U]

Perhaps with Ford US doing so well that They could turn their attention to getting Ford AU running a little better as the situations couldn't be more opposite in regards to sales and profits.