Ford's profit of $8 billion best in 10 yearsStaff writer ▼ | January 29, 2013
Full year pre-tax profit of $8 billion, or $1.41 per share, and net income of $5.7 billion, or $1.42 per share, were each lower than a year ago. Excluding the impact of 2011 changes in the valuation allowance against deferred tax assets, Ford fourth quarter net income was $565 million higher than 2011, while full year was $307 million lower than a year ago.
Q4 pre-tax profit was $1.7 billion, or $0.31 per share, an increase of $577 million from 2011. The company now has posted a pre-tax profit for 14 consecutive quarters. The net income in the same quarter was $1.6 billion, or $0.40 per share.
Ford generated positive Automotive operating-related cash flow of $1 billion in the fourth quarter - the 11th consecutive quarter of positive performance - and positive Automotive operating-related cash flow of $3.4 billion for the full year. Ford ended 2012 with Automotive gross cash of $24.3 billion, exceeding debt by $10 billion, and a strong liquidity position of $34.5 billion, an increase of $2.1 billion over 2011.
"The Ford team delivered strong results once again, underscoring that our One Ford plan is working. We are well positioned for another strong year in 2013, as we continue our plan to serve customers in all markets around the world with a full family of vehicles — small, medium and large; cars, utilities and trucks — with the very best quality, fuel efficiency, safety, smart design and value," said Alan Mulally, Ford president and CEO.
As a result of Ford's 2012 financial performance, the company will make profit sharing payments to approximately 45,800 eligible U.S. hourly employees on March 14, 2013. As part of the UAW-Ford collective bargaining agreement, Ford North America pre-tax profits of $8.3 billion will generate approximately $8,300 per eligible employee on a full year basis. Individual profit sharing payments may be higher or lower based on employee compensated hours. ■