Ford Motor Company today announced strong financial results for 2011. The company recorded pre-tax profits of $8.8 billion on a net income of $20.2 billion. Those figures represent a year-over-year profit increase of $463 million, and a net income gain of $13.7 billion compared to 2010.
The year’s financial results represented Ford’s third consecutive year of annual profit gains. According to Bloomberg, 2011 was Ford’s most profitable year since 1998. However, many expected even greater profits from Ford this year. “The gains weren’t quite as dramatic as in previous years,” one financial analyst told Bloomberg.
Although Ford struggled in many markets around the world, healthy sales within the U.S. helped keep the company’s financials in good shape. In North America, Ford recorded $6.2 billion in pre-tax operating profit, up from $5.4 billion in 2010. Ford Motor Company last year sold 2.1 million vehicles in the U.S., an increase of 11 percent compared to 2010.
In Europe, by contrast, Ford reported a pre-tax operating loss of $27 million for 2011, compared to a profit of $182 million in 2010. Likewise, Ford’s Asia-Pacific-Africa division suffered pre-tax operating losses of $92 million last year, versus a profit of $189 million a year prior.
“Despite the continued uncertainty in the external environment, the strength of our North American and Ford Credit operations allows us to continue to invest for future growth,” Ford CEO Alan Mulally said in a statement.
As a result of the strong financial results, Ford will distribute profit-sharing checks to around 41,600 American hourly employees. Based on the latest United Auto Workers union agreement, those checks will reach about $6200 for the full year. Employees were previously awarded up to $3750 each in December 2011, and should receive as much as $2450 in March 2012.
Sources: Ford, Bloomberg