Posted on 07/25/2012 6:33:58 AM PDT by CSM
DEARBORN, Mich., July 25, 2012 – Near-record profits in North America and continued strong performance from Ford Credit helped the Ford Motor Company [NYSE: F] deliver its 12th consecutive quarterly pre-tax operating profit as it reports second quarter 2012 results today.
The company reported a pre-tax operating profit of $1.8 billion, or 30 cents per share, and net income of $1 billion, or 26 cents per share. The company also continued to generate positive Automotive operating-related cash flow, and ended the period with a strong liquidity position of $33.9 billion, an increase of $1 billion during the quarter.
“The Ford team delivered another solid quarter driven by the strength of Ford North America and Ford Credit,” said Alan Mulally, Ford president and chief executive officer. “We remain absolutely committed to continuing to make progress on our One Ford plan, including dealing decisively with near-term challenges, investing for future growth, and developing outstanding products with segment-leading quality, fuel efficiency, safety, smart design and value.”
Second quarter 2012 net income was affected by lower operating results and the impact of higher tax expense compared to a year ago that resulted from the release of the tax valuation allowance in the fourth quarter of 2011.
Ford finished the second quarter with Automotive gross cash of $23.7 billion, an increase of $700 million during the quarter. Automotive debt of $14.2 billion at the end of the second quarter was up from $13.7 billion at the end of the first quarter, primarily reflecting additional drawdowns of low-cost loans for the development of advanced vehicle technologies. The company will make its last draw on these loans by August 2012, and repayment of the loans begins in September 2012.
Ford also made payments of $800 million to its worldwide funded pension plans, of which $500 million were discretionary payments to U.S. funded plans, in line with the company’s previously-disclosed long-term strategy to de-risk its funded pension plans. Dividends paid in the quarter totaled nearly $200 million. Automotive gross cash exceeded debt by $9.5 billion at the end of the second quarter, a net cash increase of $200 million during the quarter.
AUTOMOTIVE SECTOR
The decrease in total Automotive pre-tax operating profit and operating margin was more than explained by lower results at Ford Europe, Ford South America, and Ford Asia Pacific Africa.
Ford North America
For the second straight quarter, Ford North America pre-tax operating profit exceeded $2 billion, and operating margin exceeded 10 percent. The increase in pre-tax results compared with strong performance in 2011 reflected higher net pricing, improved contribution costs, and other factors, offset partially by higher structural costs for growth, and unfavorable volume and mix including an adverse change in U.S. dealer stocks.
The company’s outlook for full year North America 2012 profits remains unchanged. Ford expects significantly higher pre-tax operating profit and margin compared with 2011, as consumers continue to respond to the company’s strong product line-up, including the recently-launched all-new Escape and the all-new Fusion launching in the second half of this year. Ford also remains committed to maintaining its competitive cost structure in North America.
Focus hatchback?
No such thing as a Taurus hatch/wagon currently.
You need to bring that out here to Albuquirky for the annual Balloon Fiesta in the fall. I’d be happy to show you around from the passenger seat. ;-)
I was hoping so, too. It's down, apparently on down news from its Europe losses.
Be sure to check out the Escape Eco-Boost.
P.s. we have four Fords in the driveway.
F-150
Expedition
Fusion
Fiesta
Traded in a 1997 Mustang and 2001 Ford Escape to buy the F-150 ;-)
I wonder how many new Ford buyers are ex Government Motors owners?
Yes, we very much liked the Eco-boost. We are still comparison shopping...but the Escape is one of our top picks.
PS Meant to say Ford FOCUS hatchback (wasn’t fully awake when I first posted).
;-)
YES, I meant the Focus. We have a friend who has one and she LOVES it.
Posting before coffee does that sort of thing to me, too (looking at your previous post).
;-P
I think they look great, and their in-car electronics have a lot of features at a great price. I wish they did an AWD performance version.
New Mustangs are extremely nice - good competition for the Camaro (which I still like better, but not buying GM).
Our 11 year old Ford F150 is great...we were given a 2 year old GM Acadia...(long story) which I HATE....
UAW Striking against Ford in 3..2..1..
Looks like you have two of Ford’s latest....a Shelby and a GT. I just got a lowly V6 coupe in Sterling Gray to match my Flex. Just passed 5,000 miles on the Mustang so it isn’t broke in yet but I’m really beginning to like it.
I have a 2005 Escape with 278,000+ miles. I had the transmission rebuilt about 10,000 miles ago, but hey, how many transmissions last that long? No other major problems and very, very few minor problems. The engines seems bullet proof. I’ve been completely satisfied with it, my first Ford.
I’m in the market for a new vehicle and I’m trying to reconsider my needs but I keep coming back to an Escape. Will probably buy a new one.
I went to the Nationals in Rhode Island last weekend, and was talking to people from Jersey and Mass and they have to pay about $5,000 above sticker to get one.
That would be a blast. ‘Cept my fall is booked refereeing football games....
V6’s aren’t lowly. After the warranty, bump up the HP on that baby! She’ll fly! I have about 5,800 on the Cobra and 12,000 on the GT....
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