Ford 2010 Annual Report Download - page 5

Ford Motor Company | 2010 Annual Report 3
In 2010 Ford Motor Company
earned $6.6 billion, our highest
net income in more than 10
years. Our team is proud of
what we have accomplished,
but determined to keep moving
forward.
We are rapidly making the transition from
fixing the fundamentals of our business
to delivering profitable growth in all of our
operations. To do this we are investing in
an unprecedented amount of new prod-
ucts and technology worldwide. We have
strengthened our product line-up so that
we have best-in-class offerings in every
major segment of the market, from small
cars to large trucks. At the same time we are
expanding our geographic footprint to fully participate in the rapid
growth of newly emerging markets around the world.
As we explained in last year’s report, across the globe we are
providing customers with great products, building a stronger
business and contributing to a better world.
Great Products
In 2010 Ford launched 24 new or redesigned vehicles in key
markets around the world. These included a redesigned Ford
Explorer, Ford Edge and Lincoln MKX and new Ford Fiesta in North
America, a redesigned Ford C-MAX and new Ford Grand C-MAX in
Europe, and the new Ford Figo in India. Our strong product line-up
helped us increase our full year pre-tax operating profits in every
region of the world, and gain market share in many countries.
For the full year, Ford had its first back-to-back market share
increase in the United States since 1993, and the largest sales
percentage increase of any full-line automaker. In Canada, Ford
finished 2010 as the best-selling automaker for the first time in
more than 50 years. Ford sales increased by 32 percent in China in
2010 and by 168 percent in India.
The wave of new products will continue in 2011 as we launch the
new global Ford Focus in North America, Europe and Asia Pacific
Africa. The Ford Focus Electric will go on sale in North America
later in the year. The new global Ford Ranger also will hit markets
in Asia Pacific Africa and Europe this year.
Looking further down the road, we 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. At the same time, we
sharpened our focus on our key brands, completing the sale of
Volvo Car Corporation in August and discontinuing the Mercury
brand in the fourth quarter. This will enable us to fully devote our
resources to growing our core Ford brand while enhancing and
strengthening our Lincoln luxury brand.
Strong Business
Our 2010 full year net income of $6.6 billion, or $1.66 per share,
was an increase of $3.8 billion, or 80 cents per share, over 2009.
For the full year, excluding special items, which are detailed on
page 31, our pre-tax operating profit was $8.3 billion, an increase of
$8.3 billion from a year ago. This increase reflects the profits made
in every region of the world, led by strong performance in North
America.
The progress we made improving our core Automotive business
worldwide allowed us to significantly strengthen our balance
sheet in 2010, even as we made substantial investments in our
future. During 2010, we reduced Automotive debt by $14.5 billion,
a 43 percent reduction. In addition, in March 2011 we reduced
Automotive debt by an additional $3 billion related to the Trust
Preferred securities. In total, those actions will lower ongoing
annualized interest expense by about $1.2 billion.
The company finished the year with Automotive gross cash
exceeding debt by $1.4 billion, an improvement of $10.1 billion from
year end 2009. We ended 2010 with $20.5 billion of Automotive
gross cash.
Ford Credit’s pre-tax operating profit of $3.1 billion, an improvement
of more than $1 billion over last year, also contributed significantly
to our full year results.
Better World
Along with improvements in our operating results, we continue to
make significant progress on issues that impact the world around
us, such as fuel economy and CO2 emissions.
We have committed that all new or significantly refreshed vehicles
will be best in class, or among the best in class, for fuel economy in
their segment.
We continue to introduce fuel-saving technologies across a wide
range of vehicles. In 2011 we will expand the availability of our fuel
efficient EcoBoost family of engines by offering them in additional
vehicles and markets around the world, including the 2011 F-150 in
North America.
Last year we began delivering Ford Transit Connect commercial
vans powered by lithium ion batteries to fleet customers. Later this
year we will begin selling the Ford Focus Electric, a lithium ion all-
electric powered car, to the general public. Two next-generation
hybrid electric vehicles and a plug-in hybrid electric vehicle using
advanced lithium ion batteries also will be available in 2012.
We are offering a range of electrified vehicles because we
recognize our customers will have a range of needs that can’t
be satisfied by one single solution. To make these vehicles as
affordable as possible we are building them on our highest volume
global platforms. We want to do everything we can to make it
easier for our customers to begin using this fuel-saving, emissions-
reducing technology.
Our contributions to a better world in 2010 also included the
ongoing efforts of Ford Motor Company Fund and Community
Services, our philanthropic organization, which supports non-profit
organizations in three major areas: innovation and education,
community development and American legacy, and auto-related
safety education.
Ford employees around the world also were actively engaged
in making a positive difference throughout the year. Our Ford
Volunteer Corps, which was established in 2005, encourages
salaried employees to take two work days per year to serve as
volunteers. Last year some 27,000 Ford employees and retirees
volunteered more than 112,000 hours to help people in their local
communities.
A MESSAGE
FROM THE
PRESIDENT
AND CEO