Ford, Mercedes rake in the cash

[bmorris]

http://news.drive.com.au/drive/motor...727-1i022.html

Half-year results show a strong start for the car-making industry.

A burgeoning US market has helped Ford posted a $US2.4 billion ($A2.2 billion) second-quarter profit, pushing its earnings for the year so far to more than $4.9 billion.

However, while its US-based business showed the biggest growth for the world's second-largest car maker, the key Asia Pacific Africa region — which includes Ford's Australian operations — pegged only a $US1 million profit — down from $US113 million for the same quarter last year — due in part to ''higher costs, which include investments Ford is making to grow across the markets in the region, as well as unfavorable product-line and market mix''.

First-half earnings for the region are also well down, totalling only $34 million compared with $136 million for the first half last year.

Advertisement: Story continues below Vehicle production in the region totalled 224,000 units, with Ford anticipating that third-quarter production will rise to 230,000 units over the next three months. Of that number, Ford Australia has contributed about 9000 Falcon large cars and 5000 Territory soft-roaders so far this year.

According to Ford, the car maker ''continues to expect second half results will be lower than first half''.

''This reflects increasing commodities and structural costs, as well as seasonal factors that tend to favor the first half,'' it says.

The profit figure, down $US201 million on the same quarter last year, included one-off payments including a pension plan for Belgian employees and a reduction of another $US2.6 billion in debt for the quarter.

Meanwhile, German car maker Mercedes-Benz has pegged a record €1.7 billion ($A2.3 billion) profit for its second quarter on the back of a big jump in car sales.

So far this year, the company has banked almost €2.9 billion, almost a third more cash than for the same time last year.

Adding to the bottom line were stronger sales of mid-size passenger cars and soft-roaders, as well as lower warranty costs for the quarter.

Interestingly, the car maker's figures show it received an €11 million insurance payout for damage to its Japanese truck business after the Great East Japan earthquake and tsunami earlier this year.

Good news for Ford as a whole, not so good news for Ford Australia by the looks of things.

[ltd]

It will see a turnaround, and the important thing is Ford Aus isn't making a loss (almost).
Thing is though, there's one hell of a model lineup coming starting with the LiLPG and then apparently the Territory Diesel is selling at full retail price, and demand very strong. Then we have Ecoboost I4, the FG2 and a whole bunch of other nice things in the lineup.
Have faith brother.

[krzysiek]

I hope things turn around. I always hear guys here saying that it is going bad for Ford, but it seem's like it is going really bad. A $1M profit compared to what they were making last year at the same time really puts it into perspective.

I think that we will definitely see a RISE in profits in the short term (and hopefully long term). They have spent a lot no doubt on the new goodies coming out, but I think they will recover strongly. The LPi being a very good car for fleets, I think that will bring in a lot of sellers for them. I hope that they also offer attractive pricing for buyers on a private level of their new LPi model (to match that of the Petrol variants & their pricing) and that should result in some good sales.

Hope it all picks up for them!

[falconnut]

Maybe Ford Australia's slump in profits is due to no new models on their lineup, at the moment there is a bit of a gap right?

If i had the money i would buy the new Falcons in a heartbeat.

[BAGT514]

There is also a SIGNIFICANT retooling design cost that comes with a new model. The re-engineed Territory, Miami engine & upcoming FG 2 upgrade all costs money. Add that to slower than expected sales and pushing back the release of various new models which were expected to rake in new sales and you can see that there is some short term pain there. Hopefully that should turn around soon

[Gobes32]

Originally Posted by krzysiek

A $1M profit compared to what they were making last year at the same time really puts it into perspective.

That was for Asia Pacific, which incorporates Ford Oz, South Africa, Thailand, China and India.

So between all 5 operations they only made 1 million which means someone is dragging everyone else down. You would want to hope like hell it wasn't Ford Oz.

[jpd80]

Originally Posted by Gobes32

That was for Asia Pacific, which incorporates Ford Oz, South Africa, Thailand, China and India.
.

No,
The figure specifically excludes the joint venture in China.....

there's a bit going on in our region.....

Set up and development costs:
- South Africa T6 production Line, new Diesel Engine plant
- Thailand T6 Production Line, Focus production line
- Development of T6 SUV
- SZ Territory & FG II development cost.
- Development of small car for China
- Ongoing development work for India...(Figo update)
- Set up Fiesta Production Line in India

[SteveJH]

Thats for all of the Asia pacific though. If Ford Australia is dragging down the profits of the whole region, then things are definately not going well.

[jpd80]

Originally Posted by SteveJH

Thats for all of the Asia pacific though. If Ford Australia is dragging down the profits of the whole region, then things are definately not going well.

Same thing was said last year yet FoA made a small profit....