Ford Australia Reports 2006 Financial Results

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Ford Australia Reports 2006 Financial Results

Ford Motor Company of Australia Limited* today reported a net after-tax loss of $40.3 million for its 2006 fiscal year, compared to an after-tax profit of $148.2 million in 2005. Net sales revenue was $3.3 billion from sales of 114,965 vehicles. Overall market share was 11.9 per cent, down from 12.7 per cent in 2005, resulting from a year-on-year decline in sales of 14,175 units.

"This was an extremely challenging year for Ford in Australia," said Ford Australia President, Tom Gorman. "Numerous external factors had an impact on our overall business, including consumer demand moving away from large family sedans, which drove a reduction in our sales volume.

"To counter this shift, we embarked on decisive actions to realign our workforce and better position Ford Australia for the future, which resulted in a significant one-time restructuring cost. However, Ford remains committed to investment in future products, such as the new Falcon that's due for release next year," said Gorman.

Ford again sold more locally manufactured vehicles during 2006 than any of its competitors, despite a slight decrease in volume. Territory continued its dominance as Australia's top-selling SUV, with 2006 sales of 18,364, and a 31 per cent share of the medium SUV segment. Falcon achieved 2006 sales of 42,390, representing a 32.6 per cent share of the large car market.

"The addition of the exciting, performance enhanced Territory Turbo range and BF MkII Falcon to our line-up continued to stimulate interest in these home grown models. And our expanding portfolio of competitive and fun-to-drive imported products, including the all-new Focus XR5, and the freshened Escape and Ranger, has given us a model to satisfy every demand."

A number of new investment initiatives announced in 2006 will also contribute to the future prosperity of Ford Australia.

Three separate ACART automotive test facilities, the first of which is an environmental test lab at Ford's Proving Ground in Geelong, will help improve efficiency and enhance performance of new vehicles.

During 2006, Ford Motor Company Executive Chairman, Bill Ford, visited Geelong to dedicate a new $25 million Research and Development centre, further confirming Ford Australia's standing as a centre of design and engineering excellence for the Company. This new centre will allow Ford Australia to continue with the development of world-class vehicles for Australia and overseas markets.

In May, in conjunction with the Federal and State governments, Ford Australia announced a new strategic direction, including significant investment in new projects and accompanying facilities, totalling more than AUD$1.8 billion over the next decade.

"We're operating in a rapidly changing environment, but are confident that adjustments we made to our strategy in 2006 have better positioned us for a competitive future," said Gorman.