Ford has announced their net income for Q4 of 2010 along with the profit for the entire year and in the “rebound year” from the disaster of 2009, Ford Motor Company earned a whopping $6.6 billion.
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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:
Ford stock plunges 7 percent on open after 4th quarter profits drop
Ford stops production of new trucks due to supplier shortages
NHTSA investigating 2010 Ford Fusion over wheel stud risk
Ford's new EcoMode has potential to improve fuel economy by 24 percent
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