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article imageFord records $2.7 billion annual profit

By Miroslav Kucera     Jan 29, 2010 in Business
Ford accumulated annual profit for the first time since 2005. Ford Chief Executive Alan Mulally expects the company will be profitable again this year.
The total loss between the years 2006 and 2008 was $30 billion USD. Ford managed to go from a huge loss of $14.77 billion USD in 2008 to $2.7 billion USD profit in 2009. It is partially thanks to market share increase in North and South America and Europe but mainly thanks to cost reduction programs and debt reduction.
With quality issues of the main competitor Toyota, Ford´s position on the market can be considered as very good.
Ford President and CEO Alan Mulally said:
While we still face significant business environment challenges ahead, 2009 was a pivotal year for Ford and the strongest proof yet that our One Ford plan is working and that we are forging a path toward profitable growth by working together as one team, leveraging our global scale. In every part of the world, we are providing customers with great products, building a stronger business and contributing to a better world. Our progress has helped us gain market share in most of our major markets.
It is also good news for Ford employees, as the company announced the profit share will be paid to 43,000 eligible US hourly employees. Ford expects each eligible employee will get about $450 USD.
However, based on a bonus plan for 2009 there will be no global performance bonus paid to salaried employees. They will be awarded by merit increases in 2010 and the company reinstated the 401(k) program starting January 2010.
Ford expects 2010 will be successful and the company will generate profit.
According to Ford´s management, the company's cost reduction plan is based on aggressive restructuring and a changed model mix, accelerated development of new cars, improvement of the balance sheet and team focus.
Mulally commented:
We are more convinced than ever that Ford has the right plan to lead us through the near-term economic and external operating pressures and continue to deliver profitable growth. The entire extended Ford team is absolutely committed to building on our progress and working together as a lean global enterprise focused on automotive leadership and delivering products with the best quality, fuel efficiency, safety, smart design and value around the world.
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