Ford 2011 Annual Report Download - page 44

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Management’s Discussion and Analysis of Financial Condition and Results of Operations
42 Ford Motor Company | 2011 Annual Report
Ford Europe Segment. The charts below detail key metrics and the change in 2011 pre-tax operating profit compared
with 2010 by causal factor.
As shown above, full-year wholesale volume and revenue improved in 2011 compared with the prior year. Operating
margin declined in 2011, with higher commodity costs contributing a negative 1.5 points to Europe's full-year margin.
Ford Europe reported a pre-tax operating loss of $27 million, compared with a profit of $182 million a year ago. The
decline in results is more than explained by higher commodity costs and material costs excluding commodities, as well as
unfavorable exchange. These costs were offset partially by higher net pricing and favorable volume and mix. Other
reflects our continued investment in the Craiova facility in Romania in preparation for the production volume ramp-up in
2012, as well as lower parts and accessories profits.
The external environment in Europe is uncertain and is likely to remain so for some time. Given the challenges in
Europe, we will continue to review, take, and accelerate actions to strengthen and improve our business. This will include
fully leveraging our One Ford plan and our global resources.