DEARBORN, Mich., April 26, 2011 /PRNewswire/ — 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