NYTimes: Ford Earned $6.6 Billion in 2010

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This is their largest profit in 11 years. They seem to be doing something right.

I wonder if this is more a reflection of the recovery in truck sales where, my impression is, the profit margin is still higher than it is for car sales. But in any case, not bad.
 
Originally Posted By: Glockenspieler
This is their largest profit in 11 years. They seem to be doing something right.

I wonder if this is more a reflection of the recovery in truck sales where, my impression is, the profit margin is still higher than it is for car sales. But in any case, not bad.


+1
 
http://www.freep.com/assets/freep/pdf/C4169613128.PDF

"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. Ford ended 2010 with $20.5 billion of Automotive gross
cash."

"As a result of Ford’s 2010 financial performance, the company will pay profit sharing to
approximately 40,600 eligible U.S. hourly employees. The average amount is expected to be
approximately $5,000 per eligible full-time employee."

http://www.freep.com/article/20110128/BUSINESS0102/110128008/Ford-earns-6-6-billion-2010-hourly-workers-get-5-000-profit-sharing?odyssey=tab|topnews|text|FRONTPAGE
 
I read in the Chicago Sun Times yesterday that Ford employees are getting about $5,000 each in bonuses this year. They listed an average of $28 an hour wage for them.

Ford must be doing well.
 
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That means we are paying too much for their products. The CEO pay always burns me . But what the heck the consumers are so dumb.
 
Quote:
I wonder if this is more a reflection of the recovery in truck sales where, my impression is, the profit margin is still higher than it is for car sales.


Yes, Ford F-series sales were up over 2009, which helped, but even more so is that Ford is now making money on EVERY vehicle they sell. F-trucks are still the largest profit margin, but Ford used to not make money on cars. Now they do. This was Alan Mulally's plan.

With all of the technology that Ford has in their cars, plus what can be got as an option, there is profit in electronics. With the day that we live in many people do not want to leave the technology conveniences behind when they leave the house, as evidenced by the fact that 80% of the cars that Ford sells are sold with the SYNC system in them. Ford typically sells their cars for more than $2,000 beyond the original price of the car after the customer adds what they want to it.

Ford has a profit margin average that is twice what Toyota is getting, and people feel Toyota does quite well.

In 2009 Ford had a multimillion dollar loss in sales in the US. In 2010 they had over $5 billion in profit in the US. Let's see any other car company do that!

This is an entirely different Ford Motor Company than it was 4 or 5 years ago. Different culture, different ideology, different products, different company.


Steve
 
Let Wall Street talk it down all they want, just makes a good time to get a little more in the portfolio. Ford warned at the 3rd qtr announcement that the fourth qtr wouldn't be as good as the previous three qtrs.

They have paid down their debt by half, and they have bigger cash reserves than their outstanding debt.

Buy it, before it hits twenty early next year!

As to the bonus, it is for hourly employees, not white collar or management.

"Ford said as a result of its financial performance in 2010, some 40,600 U.S. full-time hourly employees would be eligible for profit-sharing payments of about $5,000."

Oh and it was also posted here at BITOG, last week...about the bonuses.

http://www.bobistheoilguy.com/forums/ubb...;gonew=1#UNREAD
 
There have been two threads of the same merged into this thread to keep the same information in the same place.

Bill
 
Originally Posted By: Steve S
That means we are paying too much for their products. The CEO pay always burns me . But what the heck the consumers are so dumb.


This is the usual thought. However, at Ford Motor Company the average total cost of labor is about 8% of the total cost to build the vehicle. We are typically talking about $1,500 in total labor to build a vehicle. How much would it cost just to get your car repainted at a good shop?

Ford's total labor per worker is $56/hr. To compare that to Toyota in the US (which is so commonly brought up) their total cost of labor is $54/hr. Ford is also getting more profit per vehicle than Toyota so the argument about wages is gone.

I work at the plant that builds the Econoline. Our total labor cost per vehicle is 6 1/2% of the total cost to build a van.
 
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