For release:
Thursday May 6 2010
FORD AUSTRALIA REPORTS PROFIT FOR 2009
Ford Motor Company of Australia Ltd (Ford Australia) today reported a net after-tax
profit of $13 million for 2009, an improvement of $287 million on 2008.
The company’s first profit since 2005 resulted from:
Sales revenue of $3.14 billion;
An improved company cost structure implemented at the end of 2008; and
The non-repeat of several one-time actions associated with the company’s restructure.
“As we celebrate 85 years of manufacturing in Australia and 50 years of Falcon, Ford
Australia is extremely pleased that our hard work and singular focus on the needs of our
customers has seen us return to profitability a year ahead of plan,” said Ford Australia
President and CEO Marin Burela.
“Like our parent company in the US, Ford Australia took decisive and immediate action at
the onset of the global financial crisis in late 2008 in order to weather the breaking economic
storm.
“We acted quickly to significantly restructure our business in line with the prevailing market
conditions, which has resulted in a $13 million profit for 2009.
“We significantly changed our sales and production focus to build cars based on demand and
introduced more fuel efficient vehicles like the Fiesta ECOnetic while improving the
environmental performance of our locally manufactured models.
“The great work of our product development team paid off as the award-winning FG Falcon
sedan increased its share of the large sedan segment from 25 per cent to 34 per cent over the
year.
“We also streamlined our production build process and maintained a laser-like focus on our
inventory management.
“These actions were not easy, and could not have been undertaken without the hard work and
dedication of our employees and our dealers.
“But they have delivered on the goal of improving our cash reserves and returning Ford
Australia to profit despite an industry-wide downturn in sales, providing a strong base for
continued growth and profitability.”
Sales revenue was generated from retail sales of 99,279 vehicles during 2009. While this is
lower than 2008 the profits generated from these sales were higher, reflecting a number of
key actions, including:
A rise in Falcon sedan share from 25 per cent to 34 per cent;
Increased demand for higher-value models;
Improved manufacturing efficiencies and streamlined build processes;
A build-to-order production schedule tailored to market demand; and
Strong inventory management.
Ford Australia increased production volumes in the last three months of 2009 by
implementing overtime in its Victorian-based plants, a trend which has continued each month
so far in 2010.
“We are continuing to see an improvement in our business fundamentals by strengthening our
brand appeal and delivering vehicles customers want and value. We expect this positive trend
to continue through the rest of 2010,” Mr Burela said.
Continued investment
During 2009, Ford Australia announced a continued investment program of more than $230
million across its locally produced vehicle line-up.
Aimed at delivering improved fuel efficiency and reducing emissions, the $230 million
investment will result in the introduction of the world’s first rear-wheel-drive EcoBoost 4-
cylinder engine in Falcon in 2011, as well as the introduction of a class-leading liquid phase
injection LPG system for Falcon and the launch of a new turbo-diesel engine for Territory,
also in 2011.
In 2010 the company has continued to invest in its local operations, including the recent
announcement of a $20 million program to upgrade its Geelong-based casting plant, which
will allow it to produce approximately one million brake parts annually for Bosch Chassis
Systems Australia.
“Our casting plant investment is just one example of Ford Australia taking a different
approach to our business to ensure our long-term success in Australia,” Mr Burela said.
“In addition to being a major vehicle manufacturer we are now also a supplier to the broader
automotive industry through our innovative partnership with Bosch, repositioning us for an
even stronger future.”
Milestone year
During 2010, Ford Australia is celebrating 85 years of manufacturing in Australia and the 50
year anniversary of the iconic Falcon sedan, the longest-running vehicle nameplate in the
history of Ford Motor Company.
To celebrate, the company is releasing a series of special edition Falcon 50th anniversary
models. Production of the special 50th anniversary models will commence in June, with each
model featuring unique exterior design elements, exclusive interior finishes and additional
standard equipment.
“The Falcon's long and distinguished heritage is unmatched by any other car in the history of
Australian motoring,” Mr Burela said.
“Fifty years of continuity in any industry is a remarkable achievement, but it’s especially rare
in a dynamic field like the car industry.
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Ends –
Contact:
Sinéad McAlary
(03) 9359 8498 / 0412 254 388
smcalary@ford.com
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