Ford Australia Reports 2012 Financial Results
Thu, May 23, 2013
MELBOURNE, Australia (May 23, 2013): Ford Australia today announced an after-tax operating loss of $141 (AUD) million for the 2012 financial year. This follows a loss of $290 million in 2011. Ford plans to transform its Australian business and expand its vehicle lineup by 30 per cent by 2016 to return to profitability.
The loss was a result of the re-alignment of the company’s business in November 2012. During this time, production changed from 209 vehicles per day to 148 vehicles per day in a direct response to changing customer preferences, which have driven a continued industry-wide decline in the sale of large vehicles. As a result, Ford has impaired its asset base by $143 million.
Chief Financial Officer Mark Rearick noted that the financial results mirror the restructure. “We had a 30 per cent reduction in volume at the end of last year, and our financial results reflect that we had to re-value our asset base by a corresponding amount, accounting for the loss,” Rearick said.
This restructure was a result of Ford Australia remaining focused on key aspects of the global One Ford plan, including:
- Aggressively restructuring to operate profitably at the current demand and changing model mix
- Accelerating the development of new products that customers want and value
- Financing the plan and improving the balance sheet
- Working together effectively as one team, leveraging Ford’s global assets
For the second consecutive year, Ford invested more than $200 million dollars across research, development and facilities for a broad range of global and local vehicle development programs. Last year saw Ford’s investment reach $270 million dollars which brings the company’s Ford’s total R&D investment in Australia during the past six years to more than $1.9 billion, making it the largest R&D investor of any automaker in Australia.
In 2013, Ford will continue transforming its Australian business by accelerating the introduction of new products for Australian customers, enhancing the sales and service experience, and improving its business efficiency and profitability. This includes launching updated versions of Falcon, Falcon Ute and Territory, as well as offering other world-class products such as Ford Kuga, Focus and Ranger.
“We will continue to invest in our product development facilities in Australia,” said Bob Graziano, president and CEO of Ford Australia. “Last year, our investment helped us unveil first-class improvements, such as the creation of our Virtual Reality Centre. In addition to bringing our customers a great line-up of vehicles, Ford Australia will continue to be known as a centre of excellence in this space.”
Other income of $112 million was derived primarily from the Government’s Automotive Transformation Scheme (ATS), which is a result of our research and development and local production. This accounted for just 3.7 per cent of Ford’s total revenue for 2012.