News · 8 May 2016 · Car Deal Expert Editorial Team
Originally published 2016-05-08T08:39:05+00:00. This article is part of the CarDealExpert historical archive — see our latest UK car-finance, insurance and used-car coverage in the menu above.
Ford CEO Alan Mulally won’t let investors forget that Ford’s net income for 2010 was through the roof. (Photo Credit: CC BY-ND/TopNews.in)
With new models and a reputation on the upswing, Ford Motor Co. is running strong, reports Automotive News. On Friday, the company may reveal that 2010 was its most profitable year since 2000. It would be the second straight year under CEO Alan Mulally that Ford has announced a profit.
Ford ‘money machine’ translates into 48-cent profit per share
According to a Thomson Reuters survey, Ford Motor’s fourth-quarter revenue of $30.57 billion reflects a pretax profit of about 48 cents per share. At that rate, fourth-quarter profits would total approximately $1.7 billion. For the entirety of 2010, Ford’s revenue would then total $8 billion, a fine showing after an equally fine first three quarters at $6.37 billion in net income, the company’s best total for the opening three quarters of a year since 1998.
In 2009, Ford drew an annual net profit of $2.72 billion from a total revenue of $118.31 billion, reports Automotive News. Mulally attributes his company’s recent success to Ford vehicle quality, which was ranked best among mass-market brands by J.D. Power & Associates in a recent consumer survey. Ford ranked fifth behind luxury brand Porsche overall in the J.D. Power survey.
“Ford is building better cars since (Mulally) came in,” said fund manager Gary Bradshaw of Dallas-based Hodges Capital Management, which owns 100,000 common and 100,000 preferred shares of Ford stock. “He’s just making this company a money machine.”
Ford never took TARP funds
One aspect of Ford’s recent success is consumer confidence, bolstered by the fact that the automaker did not accept TARP money like GM and Chrysler. In what Alan Mulally labeled “the world’s largest home-equity loan,” Ford leveraged its main assets back in 2006 for $23 billion in private loans. While the automaker is dealing with that debt in good stead, that hasn’t kept car-buying consumers away.
CEO Alan Mulally on Ford’s direction in 2011
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