10-KPeriod: FY2011

FORD MOTOR CO Annual Report, Year Ended Dec 31, 2011

Filed February 21, 2012For Securities:FF-PCF-PDF-PB

Summary

Ford Motor Company's 2011 10-K filing reveals a significant rebound and strategic repositioning. The company reported a substantial net income of $20.2 billion, a marked improvement from previous years, driven by strong performance in its North American automotive segment. This recovery is attributed to the "One Ford" plan, which emphasizes global product platforms, cost efficiencies, and a focus on customer-desired products. Ford also saw improved market share in the U.S. and is actively investing in emerging markets, particularly in Asia Pacific Africa, to fuel future growth. The company's financial services arm, Ford Credit, demonstrated solid profitability, although experiencing a slight decline compared to the prior year. Despite ongoing global economic uncertainties, especially in Europe, Ford is optimistic about 2012, projecting continued industry sales growth and further improvements in its operational and financial metrics. Key strategies include investing in fuel-efficient technologies like EcoBoost engines and electrified vehicles, enhancing vehicle safety, and leveraging technology for better customer experience.

Financial Highlights

41 data points
Beta

Revenue

$135.60B

16.2% Gross Margin

Net Income

$20.21B

14.9% Net Margin

EPS (Diluted)

$4.94

Total Assets

$177.39B

Cash & Equivalents

$17.15B

Free Cash Flow

$9.78B

Financial Statements
Beta
Revenue$135.60B
Cost of Revenue$113.61B
Gross Profit$21.99B
R&D Expenses$5.30B
SG&A Expenses$10.88B
Operating Expenses$128.07B
Operating Income$20.21B
Interest Expense$4.43B
Net Income$20.21B
EPS (Basic)$5.33
EPS (Diluted)$4.94
Shares Outstanding (Basic)3.79B
Shares Outstanding (Diluted)4.11B

Key Highlights

  • 1Ford reported a strong net income of $20.2 billion in 2011, a significant recovery from prior years.
  • 2The "One Ford" plan is driving global product development and cost efficiencies, leading to improved market share in North America.
  • 3Significant investments are being made in emerging markets, particularly in Asia Pacific Africa, to capture future growth opportunities.
  • 4Ford Credit remained profitable, though its earnings slightly decreased compared to 2010.
  • 5The company is prioritizing fuel-efficient technologies, such as EcoBoost engines and electrified vehicles, to meet evolving consumer demands and regulatory requirements.
  • 6Ford is actively managing its supply chain by consolidating suppliers and strengthening dealer networks globally.
  • 7Despite economic challenges in Europe, Ford anticipates overall global industry sales growth in 2012.

Frequently Asked Questions

Ford reported a substantial net income of $20.2 billion in 2011, a significant increase from $6.6 billion in 2010. This strong performance was largely driven by the automotive sector, particularly in North America, supported by the "One Ford" plan which focused on restructuring, product development, and operational efficiency.

Ford's "One Ford" plan guides its strategies, focusing on developing desirable, fuel-efficient vehicles on global platforms. Key initiatives include investing in advanced technologies like EcoBoost engines and electrified vehicles, enhancing safety features, streamlining the supply chain, expanding its dealer network, especially in emerging markets, and maintaining financial discipline to strengthen its balance sheet.

Ford Credit remained profitable in 2011, contributing positively to the company's overall results, although its pre-tax operating profit saw a slight decrease compared to 2010. This was primarily due to fewer leases being terminated and sold at a gain, and lower credit loss reserve reductions. Ford Credit continues to focus on diversifying its funding sources and managing credit and residual risks.

Ford faces risks including declines in industry sales volume (especially in the US and Europe), intense price competition due to excess industry capacity, fluctuations in commodity prices and currency exchange rates, and the impact of evolving safety, emissions, and fuel economy regulations. The company also manages risks related to supplier stability, labor relations, and substantial pension and postretirement benefit liabilities.