Annual Report 2011 - Ford Motor Company
Annual Report 2011 - Ford Motor Company
Annual Report 2011 - Ford Motor Company
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Management’s Discussion and Analysis of Financial Condition and Results of Operations<br />
<strong>Ford</strong> Europe Segment. The charts below detail key metrics and the change in <strong>2011</strong> pre-tax operating profit compared<br />
with 2010 by causal factor.<br />
As shown above, full-year wholesale volume and revenue improved in <strong>2011</strong> compared with the prior year. Operating<br />
margin declined in <strong>2011</strong>, with higher commodity costs contributing a negative 1.5 points to Europe's full-year margin.<br />
<strong>Ford</strong> Europe reported a pre-tax operating loss of $27 million, compared with a profit of $182 million a year ago. The<br />
decline in results is more than explained by higher commodity costs and material costs excluding commodities, as well as<br />
unfavorable exchange. These costs were offset partially by higher net pricing and favorable volume and mix. Other<br />
reflects our continued investment in the Craiova facility in Romania in preparation for the production volume ramp-up in<br />
2012, as well as lower parts and accessories profits.<br />
The external environment in Europe is uncertain and is likely to remain so for some time. Given the challenges in<br />
Europe, we will continue to review, take, and accelerate actions to strengthen and improve our business. This will include<br />
fully leveraging our One <strong>Ford</strong> plan and our global resources.<br />
42 <strong>Ford</strong> <strong>Motor</strong> <strong>Company</strong> | <strong>2011</strong> <strong>Annual</strong> <strong>Report</strong>