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Ford Posts $6.6 bil Profit for 2010

Workers to share in upturn with $5,00 profit-sharing checks.

by on Jan.28, 2011

Big profits still fall short of analyst expectations.

Ford Motor Co. has posted its biggest profit since 1999 – although the numbers fell more than a billion dollars short of what many had anticipated the automaker would announce.

Ford officials said they earned $6.6 billion in 2010, which will trigger profit-sharing checks for 40,600 U.S. hourly workers of $5,000, more than union members have taken home since 2001, when profit sharing generated payments of $6,700.

“We’ve always said that all our stakeholders will benefit from the growth of the company and improving profitability, and I think this is a specific reflection of that,” said Ford Chief Financial Officer Lewis Booth. “It’s a delight to be paying profit sharing.”

Keep On Top!

One reason the maker fell short of analyst expectations was the one-time, $960 million charge it took to cover the cost of paying down debt.  The maker took the prescient step of lining up extensive financing sources as the nation fell into recession.  But it is now racing to pay down those loans and trim its operating costs.  CEO Alan Mulally, in November, authorized paying down another $1.9 billion in outstanding debt.


Ford Profits Likely to Top $8 billion

Will big numbers lead to confrontation when workers return to bargaining table?

by on Jan.24, 2011

Ford CEO Alan Mulally is expected to announce total 2010 profits of $8 billion later this week.

Hoping to build its reputation with environmentally-minded motorists, Ford Motor Co. put a spotlight on battery power during this year’s Detroit Auto Show, unveiling models like the plug-in C-Max Energi microvan.  But later this week, Ford CEO Alan Mulally will focus on a different sort of green.

If all holds according to the expectations of Wall Street analysts, the maker is expected to announce that its profits for 2010 came to a total of $8 billion, the biggest number the maker has seen in a decade.  That figure is all the more significant since it came during one of the worst years the industry has experienced since the Great Depression, rather than at a time when U.S. car sales were running at or near record levels.

Profit From!

But there could be a downside to the big profit.  Ford, like its Detroit Three brethren, is getting ready to return to the bargaining table with the United Autoworkers Union.  The last time they hammered out a contract, in 2007, the union agreed to make major changes, and more followed during the downturn, including the creation of an employee-owned health program and the addition of a two-tier wage structure.