Ford Motor Company today reported 2010 net income of $6.6 billion, a $3.8 billion increase from a year ago and its highest profit in more than ten years.
The company said strong products and new investments had fueled improvements in all of its business operations around the world.
Full year 2010 pre-tax operating profit was $8.3 billion, compared to break even a year ago, reflecting a profit in every Automotive segment led by strong performance in North America. Ford Credit's strong profit also contributed significantly to Ford's full year performance.
Revenue was $32.5 billion in the fourth quarter and $120.9 billion for the full year, an increase of $17 billion from full year 2009, excluding Volvo from 2009.
North America posted a fourth quarter pre-tax operating profit of $670 million, a $59 million increase compared with 2009. Full year North America pre-tax operating profit was $5.4 billion, an improvement of more than $6 billion from a year ago. South America, Europe and Asia Pacific Africa also reported full year pre-tax operating profits for 2010.
Ford continued to reduce Automotive debt with an additional $7.3 billion of actions taken in the fourth quarter, including $2.5 billion of newly announced reductions. For the full year, Ford reduced Automotive debt by $14.5 billion, or 43 percent, which will lower annualized interest expense by more than $1 billion.
Ford ended 2010 with Automotive gross cash exceeding debt by $1.4 billion, an improvement of $10.1 billion from year end 2009.The company said it plans to deliver continued improvement in pre-tax operating profit and Automotive operating-related cash flow in 2011.
"Our 2010 results exceeded our expectations, accelerating our transition from fixing the business fundamentals to delivering profitable growth for all," said Alan Mulally, Ford president and CEO. "We are investing in an unprecedented amount of products, technology and growth in all regions of the world."
2010 marked a pivotal year as Ford launched 24 new or redesigned vehicles in key markets around the world, including the redesigned Explorer, the new Fiesta, as well as the redesigned Edge and Lincoln MKX in North America, the redesigned C-MAX and new Grand C-MAX in Europe, and the new Figo in India.
The company also announced more than $9 billion in global investments for future growth, including: $4.5 billion in North and South America; $2.9 billion in Europe; and $1.7 billion in Asia Pacific Africa.
"We expect continued improvement in 2011, 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," said Mulally. "We are delivering on our commitments to serve our global customers with a best-in-class full family of Ford products and delivering profitable growth for all associated with Ford."
As a result of Ford's 2010 financial performance, the company will pay profit sharing to approximately 40,600 eligible US hourly employees. The average amount is expected to be approximately $5,000 per eligible full-time employee.
