Ford Earns Profit for 2009
JAN
28

It’s been a tough year for most business, and automakers specifically. However, because of a plan put in place several years ago, Ford Motor Company avoided filing for bankruptcy and today reported that it earned a profit for 2009. Additionally, it expects to be profitable in 2010 on a pre-tax basis excluding special items, for North America, total automotive and total company, with positive automotive operating-related cash flow.

Ford posted a full year net income of $2.7 billion, or 86 cents per share, driven in part by favorable net pricing, structural cost reductions, net gains on debt reduction actions and strong Ford Credit results. This marks the company’s first full year of positive net income since 2005 and a $17.5 billion improvement over 2008.

“While we still face significant business environment challenges ahead, 2009 was a pivotal year for Ford and the strongest proof yet that our One Ford plan is working and that we are forging a path toward profitable growth by working together as one team, leveraging our global scale,” said Ford President and CEO Alan Mulally. “In every part of the world, we are providing customers with great products, building a stronger business and contributing to a better world. Our progress has helped us gain market share in most of our major markets.”

As a result of Ford’s 2009 U.S. financial performance, the company will pay profit sharing to 43,000 eligible U.S. hourly employees consistent with the 2007 UAW-Ford Collective Bargaining Agreement. The average amount is expected to be approximately $450 per eligible employee. As previously announced, Ford is not awarding salaried employee performance bonuses globally under the company’s bonus plan for 2009 company performance. However, the company did announce that U.S. salaried employees will receive merit increases in 2010, and the company’s 401(k) matching program was reinstated on Jan. 1, 2010.

Ford reduced its Automotive structural costs by $500 million in the fourth quarter. In 2009, Ford achieved $5.1 billion in Automotive structural cost reductions, exceeding its full year target of about $4 billion, largely driven by lower manufacturing and engineering costs, including personnel reduction actions and progress on implementing its common global platforms and product development processes.

“We delivered very encouraging results in the fourth quarter and for full year 2009 despite severe economic headwinds, although our transformation remains a work in progress,” said Lewis Booth, Ford executive vice president and chief financial officer. “We are committed to staying absolutely focused on executing our plan to deliver profitable growth.”

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0 COMMENTS ON THIS ARTICLE
cole You can view that video on the Ford YouTube channel. Here'ss the link for the specific video: http://www.youtube.com/user/Ford#p/u/23/Bf20JzJt0gM. Cole Quinnell Editorial Director theFordStory.com
4 year(s) ago via
Dan I am searching for a dvd or download of a recent infomercial Ford ran on TV several Saturdays ago. The story was about the One Ford plan, with CEO and other management reviewing the turnaround at F over the last 3-4 years. thank you dan
4 year(s) ago via
edvard This is less to do about "Free enterprise" or whether Ford took government money and more to do with the fact that Ford has managed to reverse 3 decades of negative bias against its products. This has been the single biggest problem for the Big 3 ever since Honda and Toyota came onto the scene in the 70's with better engineered cars at a time when Ford, GM, and Chrysler were churning out dinosaurs. I'm 32 years old and never in my lifetime as any American car company been associated with quality. I myself have been wary of anything Ford has produced but I am now finding myself more and more interested in their products because for one I think there has actually been real changes made in their quality as seen in just about every single auto magazine and consumer reports article. At the same time it seems that Toyota is going down the road that the Big 3 did for the past several decades, putting emphasis on quantity versus quality. So indeed, my next vehicle might very well be a Ford and I thought I'd never see the day I'd actually think that. So congratulations to Ford. You've convinced at least one non-Ford owner to consider your brand.
4 year(s) ago via
Linda Thank you Ford, for proving that American innovation and companies are the best ! That the free enterprise system in the United States works and intelligent management works for all employees ! Thank you for looking so forward and not taking the stimulus money. Thank you for being Ford, an American icon. Keep up the fantastic job ! Have you driven a Ford lately ! I have and I love my 2005 Ford Taurus SES.
4 year(s) ago via
Joe Gross I think the Ford commercials are so annoying! The same guy with the goofy hat. Can't they come up with something new?
4 year(s) ago via
Frank Ondarza The Ford Motor Co. Economic miracle is a very clear mensage to others industries that the importance of the free enterplrece and inteligent manage is the base of Democracy. Free managment and higth thecnology supported by labors and engeeniers is the response of the Ford Motor Co.to the actual ecomic situation. Industries dont need the goverment managment or the Goverment monies. FREE ENTERPRICE IS THE DEMOCRACY BASE OF THE AMERICAN INDUSTRIES. FORD IS AMERICA. COGRATULATION FORD PEOPLE FRANK ONDARZA
4 year(s) ago via
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