PROFITABLE GROWTH FOR ALL
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Management’s Discussion and Analysis of Financial Condition and Results of Operations<br />
Ford North America Segment. The charts below detail key metrics and the change in 2011 pre-tax operating profit<br />
compared with 2010 by causal factor.<br />
As shown above, full-year wholesale volume and revenue improved in 2011 compared with the prior year. Operating<br />
margin declined one-tenth of a percentage point; this includes an adverse impact of 2 points due to higher commodity<br />
costs.<br />
Ford North America reported a pre-tax operating profit of $6.2 billion, compared with a profit of $5.4 billion a year ago.<br />
Higher net pricing reflects the strength of our brand and products, a disciplined approach to incentive spending, and our<br />
ongoing practice to match production to customer demand. Favorable volume and mix was more than explained by<br />
higher U.S. industry and dealer stocks. These were offset partially by unfavorable contribution costs reflecting higher<br />
commodity costs, higher material costs excluding commodities, and higher warranty and freight costs. Other costs reflect<br />
unfavorable structural costs.<br />
As we look ahead to 2012, we expect North America to continue to be the core of our Automotive operations, with<br />
improved profitability compared with 2011.<br />
40 Ford Motor Company | 2011 Annual Report
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