Ford announces $6.6 billion profit for 2010
The early news from Ford was that they “only” saw a net income of $190 million in the fourth quarter of 2010 compared to the $886 million shown in the last three months of 2009 but it is important to note that in the last quarter of 2010, Ford spent $960 on debt reduction expenses. This obviously cut into net income for Q4 2010 but the $960 million in debt expenses helped to reduce Ford’s debt by over $1.9 billion so while it made things look not-so-great in the short run, the automaker continues to make smart moves to improve its overall balance sheet.
During the course of 2010, Ford paid off $14.5 billion – reducing their overall company debt (from automotive activities) by an impressive 43%. The company brought in $120.9 billion throughout 2010, up $17 billion from 2009 and operating-related cash flow for the year was $4.4 billion. In short, 2010 was a pretty good year for Ford Motor Company as they saw increase across the board in the cash, income, profit, and revenue columns while making a substantial reduction in company debt.
Ford continues to roll out new models under their cost-saving One Ford plan, with the same or similar vehicles being offered around the world rather than offering a variety of different vehicles in different markets. This should help to disperse R&D costs across more markets and improve sales across the board for Ford; suggesting the things will continue to improve for Ford through 2011.
Other Ford News:
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Ford's new EcoMode has potential to improve fuel economy by 24 percent