Ford today reported 2005 full-year net income of $2 billion, or $1.04 per share, driven largely by its Financial Services Sector and the $1.4 billion sale of The Hertz Corporation. South America, Europe and Asia Pacific were all profitable, but these profits were more than offset by losses in North America. For the full year, Ford’s worldwide Automotive sector reported a pre-tax loss of $1 billion, compared with pre-tax profit of $850 million a year ago. Premier Automotive Group continued to incur losses, but these were substantially reduced from 2004 levels. “Excluding North America, our automotive operations made great progress in 2005; we must keep working to improve our business in each and every region,” said Chairman and Chief Executive Officer Bill Ford. (Stay tuned to Leftlane for live coverage of Ford’s “Way Forward” announcement at 10:30 a.m. ET.). More info after the jump…
Geographic Breakdown
The Americas reported a 2005 full-year pre-tax loss of $1.2 billion,compared to a pre-tax profit of $1.6 billion a year ago. For the fourthquarter, the Americas had a pre-tax loss of $15 million, an improvement of$411 million compared to a pre-tax loss of $426 million a year earlier.
North America: For 2005, Ford ’s North America automotive operationsreported a pre-tax loss of $1.6 billion, a decline of $3 billion from 2004.The decline primarily reflected unfavorable cost performance, lower U.S.market share, lower dealer inventories and adverse exchange. For the year,North America’s sales totaled $81.4 billion, compared with $83 billion a yearearlier.
For the fourth quarter, North America automotive operations reported apre-tax loss of $143 million, compared to a pre-tax loss of $470 million in2004. The improvement primarily reflected cost reductions and favorable netpricing, partially offset by operating losses incurred by the former Visteonactivities now controlled by Ford. Fourth-quarter sales were $22.1 billion,compared with $21.1 billion in 2004.
South America: Ford’s South America automotive operations reported apre-tax profit of $389 million, an increase of $249 million from a 2004pre-tax profit of $140 million. The improvement primarily reflected netpricing and favorable volume, as well as a stronger Brazilian currency.Full-year sales improved to $4.4 billion from $3 billion in 2004.
In the fourth quarter, Ford’s South America automotive operations posted apre-tax profit of $128 million, an improvement of $84 million, compared with apre-tax profit of $44 million in 2004. The improvement primarily reflectedfavorable net pricing and exchange. Fourth-quarter sales were $1.3 billion,an improvement from $899 million a year ago.
Premier Auto Group
The combined 2005 full-year pre-tax profit for Ford Europe and PAG was$36 million. This compares with a loss of $626 million for 2004. For thefourth quarter, Ford Europe and PAG had a combined pre-tax profit of$112 million, an improvement from a pre-tax loss of $324 million a year ago.
Ford Europe: Ford Europe posted a full-year pre-tax profit of $136million, compared with a pre-tax profit of $114 million a year ago. Theimprovement primarily reflected favorable cost performance and exchange,partially offset by unfavorable net pricing and mix. Sales for the yeartotaled $30.2 billion, compared to $26.5 billion in 2004.
For the fourth quarter, Ford Europe reported a pre-tax profit of$66 million, an improvement from a pre-tax loss of $69 million a year ago.The improvement primarily reflected favorable cost performance and higherprofits at our operations in Turkey, partially offset by unfavorable productmix. Fourth-quarter sales totaled $8.2 billion, compared to $7.4 billion ayear ago.
Premier Automotive Group: For 2005, PAG reported a full-year pre-tax lossof $100 million, an improvement from a pre-tax loss of $740 million a yearago. The improvement primarily reflected the impact of new products,primarily at Land Rover , that resulted in a richer mix and improved netpricing. Full-year sales for the group totaled $30.3 billion, compared to$27.6 billion in 2004.
In the fourth quarter, PAG reported a pre-tax profit of $46 million, animprovement of $301 million, compared with a pre-tax loss of $255 million inthe year-ago period. The year-over-year improvement primarily reflected theimpact of new Land Rover products, resulting in a richer mix and improved netpricing. Fourth-quarter sales totaled $8 billion, compared to $7.8 billion a year ago.
