Ford posts $20.2 bn net incomeJanuary 28th, 2012 - 4:58 am ICT by IANS
Washington, Jan 28 (IANS) Ford Friday posted a net income of $20.2 billion in 2011, the third consecutive year of the company’s increased operating profits.
The company’s 2011 net income, equal to $4.94 per share, was an improvement of $13.7 billion over its 2010 full year profits, Xinhua reported.
Ford executives praised the results as an encouraging sign for future profitability, as the American auto industry continues to recover from the 2008 financial crisis.
“2011 marked a milestone year in our work to strengthen our balance sheet,” said Lewis Booth, Ford executive vice president and chief financial officer.
“We increased automotive cash, reduced debt and improved liquidity, clearing the way for us to resume paying a quarterly dividend.”
Ford said by the end of 2011 it reduced its debt from $19 billion to $13.1 billion, and that due to 2011 financial success, it will make profit sharing payments to over 40,000 US hourly employees, with an estimated payment of $6,200 per eligible employee.
However, Ford’s 2011 profitability was also heavily affected by a favourable one-time, non-cash special item of $12.4 billion in deferred tax assets in the fourth quarter.
Its fourth quarter pre-tax operating profit was only $1.1 billion, a decrease of $189 million from the same period in 2010.
Wall Street appeared dismayed at the results, Ford stocks falling 4 percent in the first hours of trading.
As for the 2012 outlook, Ford said that it predicted US full year industry volume to be in the range of 13.5 million to 14.5 million vehicles.
Many analysts were pleased with the American auto industry’s performance as a whole in 2011, with US sales of almost 13 million vehicles and positive signs in the still recovering manufacturing sector.
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Tags: american auto industry, booth ford, chief financial officer, deferred tax assets, eligible employee, executive vice, financial success, ford executive, ford executives, fourth quarter, jan 28, liquidity, manufacturing sector, million vehicles, net income, operating profit, positive signs, quarterly dividend, third consecutive year, xinhua