Ford returns to profit in Ireland as revenues increase 6.5%
US car giant reports profit but job cuts expected in Cork operation
Henry Ford & Son Ltd recorded the pre-tax profit of €1.34 million following a pre-tax loss of €861,000 in 2017.
The Irish arm of car giant Ford last year returned to profit to record pre-tax profits of €1.34 million.
New accounts show that Henry Ford & Son Ltd returned to profit as revenues increased by 6.5 per cent to €295.4 million last year.
The company recorded the pre-tax profit of €1.34 million following a pre-tax loss of €861,000 in 2017.
Numbers employed at the company last year reduced from 30 to 28 and staff costs last year totalled €3.66 million. Pay to key management personnel last year increased from €904,000 to €955,000.
However, up to 20 job losses are expected at the company’s Cork head office as part of a major restructuring currently underway, with greater responsibility for its Irish business largely falling under the control of Ford UK.
The move is part of a global cost cutting exercise at Ford, with an estimated 10 per cent of its workforce being cut in an attempt to stem losses outside of the US and restructure the company for the age of electric motoring, where it lags behind rivals..
The directors state that Ford had market share in the Republic of 11.3 per cent in 2018, where Ford was market leader in commercial vehicles and fourth in passenger cars. The directors state that the overall vehicle industry was down 3 per cent last year.
Based in Cork, the company was founded in 1917 by Henry Ford and was the first location outside the US, selected because his grandfather emigrated from the county.