|Ford Auto Operations, 2004–2005. Click to enlarge.|
Ford Motor released its financials for 2005 today, reporting company-wide full-year after-tax income from continuing operations of $2.5 billion, a drop of 42% from the $4.3 billion in 2004.
Its North American auto operations was the most troubled unit, reporting a pre-tax loss of $1.6 billion for the year, a decline of $3 billion from 2004. Ford attributed the sharp drop and resulting loss to unfavorable cost performance, lower U.S. market share, lower dealer inventories and adverse exchange.
The North American auto group’s performance had improved in the fourth quarter relative to 2004, with a pre-tax loss of $143 million, compared to a pre-tax loss of $470 million in 2004. For the year, North America’s sales totaled $81.4 billion, compared with $83 billion a year earlier.
Financial Services remains the big money maker for the company. Financial Services Sector results include The Hertz Corporation through Dec. 21, 2005, the date on which it was sold.
For the full year, excluding special items, Ford's Financial Services sector reported a pre-tax profit of $4.4 billion, compared with a pre-tax profit of $5 billion last year. For the fourth quarter, excluding special items, the Financial Services Sector earned a pre-tax profit of $881 million, compared with pre-tax profits of $1 billion a year ago.
Ford today is releasing its 2006 Business Review, which will include details of the North America “Way Forward” restructuring plan.