Ford Oz Records 27 million dollar profit

[Rob 351]

After years of losses, Ford Australia reports a $27 million profit in 2017
Advertisement
Ford logo11 May 2018
By TIM NICHOLSON
FORD Australia has returned to profit for the first time since 2010, with the Blue Oval recording an after-tax profit of $27 million in 2017.

This result is a significant improvement over Ford’s 2016 result, which saw the company report a loss of $23.7 million, while its 2013 decision to close its manufacturing operations meant a loss of $267m that year.

Ford sold 78,161 vehicles in Australia in 2017, which was 3.8 per cent off its 2016 haul. It was enough for a 6.6 per cent market share and sixth place on the best-selling automotive brands list for the year.

In contrast, rival Holden was fourth on the sales ladder last year with 90,306 sales, and the brand recorded a $156.8 million profit for 2017.

Of Ford’s 2017 sales tally, just 2046 were built at its Victorian facility after the car-maker closed its manufacturing operations in October 2016.

Ford also invested heavily in research and development in 2017, spending $471.5 million for the year.

Ford’s Australian engineering and design teams that are housed at the Broadmeadows, Geelong and You Yangs sites are responsible for the development of the Ranger pick-up and related Everest SUV.

The Ranger and Everest are sold in about 180 global markets, and the local team are working on the US and Chinese-market versions of the Ranger, as well as various other global model programs.

Ford further invested $14 million – of a planned $50m over three years – on new and upgraded facilities, including an expansion of the design studio, equipment and facilities at the You Yangs proving ground.

Revenue from continuing operations hit $3.5 billion in 2017, of which $506.5 million was gained through Ford Australia’s engineering arm. The remaining $3b came from sales of Ford’s vehicles, parts and services.

Ford received $1.6 million last year as part of the federal government’s Automotive Transformation Scheme.

In 2017, the company spent $4.9 million on staff redundancies.

In a statement, Ford Australia said it was “on track” in transforming and growing its business. The company also highlighted the impact of decommissioning the manufacturing plant, although it is unclear in the report how much this set Ford back in 2017.

“Our 2017 financials reflect a significant growth in our core business as we move towards sustainable profitability. This is tempered by ongoing decommissioning costs. Ford continues to focus on refreshing our product line-up to offer more innovative products for consumers and to drive profitable growth.

“Ford continues to invest in the future with nearly $3 billion in R&D in Australia the past seven years, and more than $475 million confirmed for 2018 to bring more vehicles to market for consumers all over the world.

“We are now Australia’s largest auto employer with over 2000 highly skilled professionals, including the team that leads the design and engineering of the Ranger, Ranger Raptor and Everest for Australia and the world.”
Ford

[roddy1960]

Cool !!!!! . 27 M in the black is pretty good first year without a directly local Australian product other than R/D link......Interesting to see Holden made 156M . I wonder how they'll fare with the lacklustre stuff and problematic matters when 2018 figures are released next year . Not that Ford won't have similar things on the back of the transmission bad conduct fines etc just recently been dished out .

[malazn mafia]

All those high margin Thai Rangers built at bottom dollar and sold for top dollar must really have paid off..

[GT1533]

Good to see them back in profit, but a fairly ordinary one. Works out at about $350 per unit sold, which is very low given that the majority of sales (Ranger and Mustang) retail for over $50k (which implies wholesale of $40k).

A profit of $200 mil was fairly common in the good years of Falcon family on sales of 120,000.

[Fordman1]

Originally Posted by GT1533

A profit of $200 mil was fairly common in the good years of Falcon family on sales of 120,000.

Common ?

Must be in a parallel universe ..

[GasoLane]

^^^^ What he said.

MELBOURNE — Ford Motor Co. of Australia Ltd. reports a 1999 after-tax profit of A$82.3 million (US$50 million), up 41% on its 1998 performance.
Revenue fell for a third straight year, down 6.4% to A$2.9 billion (US$1.7 billion) as vehicle sales fell for the fourth year in a row, down 1.5% to 126,900 units.

http://wardsauto.com/news-analysis/f...fit-sales-down

[prydey]

Shutting down local manufacturing should improve the bottom line for all 3 manufacturers (Ford, Holden and Toyota).

[jpd80]

Originally Posted by malazn mafia

All those high margin Thai Rangers built at bottom dollar and sold for top dollar must really have paid off..

Maybe a lot of the profit stays behind in low tax Thailand...

[nstg8a]

Originally Posted by jpd80

Maybe a lot of the profit stays behind in low tax Thailand...

Bingo....

[Ben73]

Nice, at least they get to keep 17 mil of it.

[Crazy Dazz]

So selling cheap imported **** is profitable? Who knew

[prydey]

Originally Posted by Crazy Dazz

So selling cheap imported **** is profitable? Who knew

Unlike building cheap **** locally!

[DFB FGXR6]

Originally Posted by prydey

Unlike building cheap **** locally!

..............from cheap imported parts.

Even certain versions of the final FG X Falcon had a Chinese made version of the fabled German ZF 6 Speed Auto.

It is (was) what is it is.

[GTMOND]

God, some people are miserable. As far as I’m aware you run a business to make money, so decisions they made in axing local car manufacturing seems to be a sound one.
And trust me I can’t stand seeing manufacturing disappear from our shores, not just cars either, white goods, tools and the list just goes on, it really sh.ts me.
But that isn’t going to change anytime soon.

[Crazy Dazz]

Originally Posted by GTMOND

As far as I’m aware you run a business to make money, so decisions they made in axing local car manufacturing seems to be a sound one.

Wow, thanks for that great insight.
And here was me thinking that the decision to axe local manufacturing was part of the global conspiracy by the Jewish Bankers.

Simple fact is that now "Ford Australia" are nothing. I have as much interest in whether they make a profit as I do K-Mart.

Just like many great things, the Creator of my cars is dead. To me that just makes what they left behind even more valuable.

[mike_nofx]

Originally Posted by Crazy Dazz

Wow, thanks for that great insight.
And here was me thinking that the decision to axe local manufacturing was part of the global conspiracy by the Jewish Bankers.

Simple fact is that now "Ford Australia" are nothing. I have as much interest in whether they make a profit as I do K-Mart.

Just like many great things, the Creator of my cars is dead. To me that just makes what they left behind even more valuable.

Exactly my thoughts.

When Ford built cars in Australia there was some incentive for me to want them to succeed. Now they have nothing locally made why should people even care if they have success?

It’s like supporting an Australian sporting team, it makes sense. We want the Australian Socceroos to succeed because they are Australian. If they move the team to Thailand and become the Thailand Socceroos I stop caring. The success of things like Mondeo or Ranger couldn’t possibly interest me any less.

[Bossxr8]

Originally Posted by Crazy Dazz

Wow, thanks for that great insight.
And here was me thinking that the decision to axe local manufacturing was part of the global conspiracy by the Jewish Bankers.

Simple fact is that now "Ford Australia" are nothing. I have as much interest in whether they make a profit as I do K-Mart.

Just like many great things, the Creator of my cars is dead. To me that just makes what they left behind even more valuable.

With the headquarters for Ford Asia Pacific Product Development here I can assure you we are not nothing

Many people who worked on Falcon and Territory are doing Ranger, Everest etc now.

[Wretched]

But they still employ a substantial amount of engineers working on GLOBAL products. Does that mean anything to you?

[mike_nofx]

Originally Posted by Wretched

But they still employ a substantial amount of engineers working on GLOBAL products. Does that mean anything to you?

It’s the same as telling me there’s lots of Australians working in Great Wall and Mahindra dealerships, selling spare parts for them or as mechanics repairing them.

[malazn mafia]

Originally Posted by mike_nofx

It’s the same as telling me there’s lots of Australians working in Great Wall and Mahindra dealerships, selling spare parts for them or as mechanics repairing them.

The worse is the snob suit and tie German brand dealers and dealerships, that fought and campaigned tooth and nail against the grey market imports which were going to happen, once there was nothing left to protect. Would have loved to see them all go out of business or their license to print money being taken away, and forced to work harder for their money

[Wretched]

Originally Posted by mike_nofx

It’s the same as telling me there’s lots of Australians working in Great Wall and Mahindra dealerships, selling spare parts for them or as mechanics repairing them.

No it's not and you know that.
Completely apples and oranges. Engineering & Design is not the same as sales and maintenance.

[GTMOND]

Plus it’s better to have the option to get some ford cars ,Mustang ect than have no fords here at all, which would be the case if they were not profitable.
They may be dead to you, but I’m glad to still have the option to buy a rear wheel drive V8 which in this day and age is almost extinct.

[prydey]

speaking for myself, Ford is like my footy team. I'm a Ford fan. I've never cared where they were built or what they built. I just like Fords, and I like the way they do business as well. The determination to not accept govt money in the U.S, but instead get through the financial crisis on their own is a good example, and actually endeared them to many americans also.

The products on offer, while not suiting everyone, are largely good products. Of course the dry clutch powershift saga wasn't one of their best moments, but in 2018, the lineup is solid.

Seeing them do well is still pleasing for some of us. Many predicted a big slide down the charts once falcon ended, but they have proved they can keep up with the market.

[Nikked]

Ford Australia is dead?

Tell that to the thousands of workers still employed by ford Australia.