Ford's Irish operation returns to profit after revenue increased 10% last year

 

THE IRISH arm of motor giant Ford last year returned to pre-tax profit after revenue increased by 10.5 per cent to €192 million.

Accounts just filed by the Cork-based Henry Ford Son show that the company recorded a pre-tax profit of €1.55 million in the 12 months to the end of December last after recording a pre-tax loss of €956,000 in 2010.

The directors state that the €18.8 million increase in revenue from €173.8 million to €192.1 million “reflects an increase in demand for new vehicles during the year relative to market demand in prior year”.

Ford Ireland had the best selling new car in Ireland last year with 4,242 Ford Focus cars sold and it remains the best selling new car to date this year.

However, the US-owned car-maker lost its place as the top selling make in Ireland to Toyota last year with Ford’s share of the new car market slipping from 12.75 per cent to 11.7 per cent.

Overall, figures from the Society of the Irish Motor Industry (SIMI) show that new car sales in Ireland last year increased marginally from 88,446 in 2010 to 89,878 – an increase of 1.6 per cent.

The returns to the Companies Office show Ford’s main Irish unit paid a €70 million dividend during the year. The dividend payout reduced shareholder funds from €76 million to €1.9 million.

The firm imports and distributes Ford cars in Ireland and the directors state “the company plans to continue to supply Ford motor vehicles to the Irish market and further extend its market share”.

The figures show that the firm’s operating losses reduced by 77 per cent from €1.9 million to €441,000 last year.

But interest receivable of €703,000 and other finance income of €1.28 million resulted in the €1.55 million pre-tax profit.

The company’s cost of sales last year increased from €165.7 million to €182.7 million with the firm’s gross profit increasing from €8.1 million to €9.4 million.

The firm’s selling and distribution costs increased from €5 million to €5.5 million with administrative expenses increasing from €4.1 million to €4.4 million.

The figures show that the firm made a €4.3 million loss for the year after an actuarial loss of €6.2 million on the firm’s pension scheme is taken into account.

The numbers employed by the firm remained at 35 last year with staff costs decreasing marginally from €4 million to €3.8 million.

The figures show that emoluments paid to the five directors marginally increased from €755,000 to €768,000.