- Ford's fourth-quarter and full-year earnings benefitted from a one-time tax allowance.
- The automaker still reported a significant pretax operating profit in 2011 of $8.8 billion.
- It was the third consecutive year of profits, and Ford's most profitable year since 1998.
DEARBORN, Michigan — Bolstered by a one-time tax gain, Ford Motor Company reported a massive profit of $20.2 billion in 2011 — its third consecutive year of profit and the automaker's most profitable year since 1998.
In the fourth quarter, Ford eliminated a special accounting allowance against future losses — an indication that the company believes it has entered a period of sustained profitability and no longer needs the reserve. The elimination of that allowance added $12.4 billion in profit to its quarterly and full-year earnings.
Even without the accounting gain, Ford's pretax operating profit in 2011 was $8.8 billion.
On the down side, the automaker posted losses in Europe and Asia Pacific, but North American operations reported gains in revenue and net income. Pretax operating profit in North America last year rose 15 percent to $6.2 billion.
For the year, Ford recorded revenue of $136.3 billion, up 13 percent from 2010.
The company also slashed debt by $6 billion and boosted net cash reserves by $8.4 billion.
Inside Line says: Accounting change or not, Ford is making money, but its weakness in foreign markets in likely to keep its stock down.
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tbone85 says:
02:47 PM, 01/31/2012
I'm sorry if the truth upsets you. Hopefully you'll grow up one day and be able to act like a man instead of a child.
Fact: No single day of stock price results is a basis for predicting that a nearly 110 year old company is going to go out of business.
Fact: It is quite common for companies stock prices to go down the day that they announce profits. Amongst others, it has happened to IBM, GE, Apple, Exxon, and virtually any other company of note that you'd like to name.
Fact: Only a nitwit would give investment advice when they obviously haven't got a clue about how stock markets work.
Fact: I own 3 car now and have owned 10 in my lifetime. 8 of them have been American cars. If the Focus had been available when I needed to buy a compact 5 years ago, I would have bought it. The state of American compacts were abysmal then. Not the case today. By the way, what do you drive--assuming you're old enough to have a driver's license.
Fact: I have challenged people when they make bigoted, stereotypical, or false remarks. I don't challenge anyone's patriotism. I run a small business that provides jobs in the U.S. and I compete with others who offshore jobs. I don't apologize for loving my country or preferring to buy products made here whenever feasible. I don't insult others for making different choices, and I appreciate good products no matter where they come from.
As for the rest of your pathetic and really funny remarks, grow up. If you're not man enough to defend your silly or factually wrong statements without acting like a child, then maybe mommy and daddy ought not let you use the computer.
qdp says:
05:52 PM, 01/30/2012
I am talking about auto industry and stock performance, which are all based on facts, while you always threw your stink shoes at me for the sake of your personal dislikes
You drive Mazda3 and claimed it is a cool car, while routinely policing others for so-called "unpatriotic" opinions. Fairly speaking you are a mentally sick retarded troll, having no integrity, no sense of self-esteem and no sense of shame either.
qdp says:
04:12 PM, 01/30/2012
I am talking about auto industry and stock performance, which are all based on facts, while you just throw your stink shoes at me for the sake of your personal dislikes
You drive Mazda3 which I think a cool car, while routinely policing others for so-called "unpatriotic" opinions. You, mentally sick and retarded troll, have no integrity, no sense of self-esteem and no sense of shame. You'd see your doctor asap
tbone85 says:
01:18 PM, 01/30/2012
QDP, that has happened to many companies who have posted profits in the past. There is nothing remarkable about a stock price dropping on the announcement of quarterly or annual profits. It has happened to GE, Apple, Microsoft, Exxon, and the list goes on. A snap shot of a stock price no matter what day it is taken on cannot be used to justify the radical prediction that Ford and GM are going out of business.
A decade or two from now when you are proven wrong, I hope you'll have the good grace to at least admit it to yourself. Presuming to offer stock advice based on one day's result--no matter what day it-- is sheer madness.
qdp says:
12:36 PM, 01/29/2012
@tbone85
I guess you have no idea about what I talked about.
Last Friday was the day Ford released its financial reports and the stock drop is the market's response to it.
tbone85 says:
10:47 AM, 01/29/2012
"@QDP ???? do you even know what you are talking about"
If you've read his earlier posts, then you already know the answer to that.
"Last Friday, Ford's stock dropped 4.16%, while GM's dropped 1.42% and Toyota's dropped 1.37%."
Well there's a DEFINITIVE analysis. You've picked the stock results of 1 day as a predictor of the long-term viability of three companies. Ignore the annual profit. Ignore an improving product mix. Just wow.
fandiesel says:
04:59 AM, 01/29/2012
They have made so much profit they will be lowering prices soon to capture more market share !
qdp says:
11:25 PM, 01/28/2012
@calspecial68
Last Friday, Ford's stock dropped 4.16%, while GM's dropped 1.42% and Toyota's dropped 1.37%.
calspecial68 says:
10:54 PM, 01/28/2012
I found the transcript which this article pulled info from. The earning call was just yesterday morning, and the whole of the report was rather positive. I don't know what qdp is talking about unless he can see into the future, or he's merely talking about Ford's financial debt (the bulk of it all). Latest numbers I could find from a different source was $98B in total debt. $84B of financial debt, $14B in auto. Mind you, this was as of August 2011. A lot has happened since then.
Here's the transcript for those interested:
http://seekingalpha.com/article/322751-ford-motor-s-ceo-discusses-q4-2011-results-earnings-call-transcript
qdp says:
10:41 AM, 01/28/2012
@windsor5
Have gut to face the truth. Just look at what has happened to these companies in the past 10,20,or 50 years. Unless you want others to buy their stock and then to be wiped off completely in near future, I see little chance. Be hopeful while truthful too.