DEARBORN, MI- Ford Motor Co. has reported second quarter 2011 net income of $2.4 billion, or 59 cents per share, a decrease of $201 million, or 2 cents per share, from second quarter 2010. This 8% decrease from a year ago is likely due to increased spending on new models and higher commodities costs.

Second quarter pre-tax operating profit was $2.9 billion, or 65 cents per share, a decrease of $64 million, or 3 cents per share, from second quarter 2010. Total automotive results improved, offset by an anticipated reduction in financial services results.

For the first half of 2011, Ford earned a pre-tax operating profit of $5.7 billion, net income of $4.9 billion and reported automotive operating-related cash flow of $4.5 billion. Ford continued to grow volume and revenue during the period.

Ford’s second quarter net income was affected by unfavorable special items of $272 million, $177 million more than a year ago. The special items include personnel reduction actions, Mercury and other dealer-related actions in North America, and pension settlements in Belgium.

Second quarter Automotive pre-tax operating profit was $2.3 billion, an increase of $209 million from second quarter 2010. Second quarter Ford Credit pre-tax operating profit was $604 million, a decrease of $284 million from second quarter 2010.

North America posted a second quarter pre-tax operating profit of $1.9 billion. South America, Europe and Asia Pacific Africa also were profitable.

Ford’s second quarter revenue was $35.5 billion, an increase of $4.2 billion from second quarter 2010. Ford generated positive Automotive operating-related cash flow of $2.3 billion in the second quarter.

Ford continued its focus on strengthening its balance sheet, with a net reduction in Automotive debt of $2.6 billion in the second quarter. The net reduction includes $2.3 billion of payments on its term loans and full repayment of the outstanding balance of $800 million on its revolving credit line. These actions were offset partially by an increase in low-cost loans to support advanced technology.

Ford ended the second quarter with $22 billion of automotive gross cash, an increase of $700 million compared to March 31, 2011. Automotive gross cash exceeded debt by $8 billion, leading to a first-half improvement of $6.6 billion compared with the end of 2010.

Ford’s automotive liquidity totaled $32.2 billion, an increase of $4.3 billion in the first half.



Second Quarter Highlights

  • Increased market share in the United States and Europe

  • Remained No. 1 in Canada, including best June result in 22 years

  • Increased sales volume by over 40 percent in Turkey and by more than 30% in Russia

  • Increased market share in China and ASEAN

  • Focus, F-150 and MKX won IIHS Top Safety Pick; Focus won Euro NCAP’s five-star rating

  • Lincoln named the top brand in the 2011 AutoPacific Vehicle Satisfaction Awards

  • Previewed 2013 Taurus at New York Auto Show

  • Announced plans to build 1.0-liter three-cylinder EcoBoost engine and all-new eight-speed transmission

  • Announced $350 million investment with joint-venture partners to build Ford’s first transmission plant in China with initial capacity of 400,000 six-speed transmissions

  • Announced plan to add 340 new dealerships in China by 2015

  • Made commitment to build next-generation small SUV in China

  • Announced $72 million investment to increase production capacity at the Chennai Engine Plant in India

  • Began production of Duratorq TDCi engine in South Africa

  • Announced plan to export Ranger to 148 markets from South Africa

  • Revealed new production plans in Europe that will enable the launch of at least 20 all-new or significantly freshened vehicles in next three years

  • Signed agreement for a 50-50 joint venture in Russia with Sollers to provide more products and expanded services for the market

  • Announced plan to triple production capacity of electrified vehicles in the U.S. to more than 100,000 by 2013