Ford profit slumps

RISING petrol prices and lower demand for its large vehicles has dented Ford Australia’s 2005 calendar year profit figure. Calculated according to new Australian International Financial Reporting Standards, the $148.2 million net profit after tax was 23 per cent down over 2004.

Company earnings fell from an adjusted $192.3 million. Net sales revenue for 2005 was $3.9 billion and resulted from sales of 129,140 vehicles.

Ford Australia president Tom Gorman said the company’s 2005 financial position was strong but "the reduction in our profit and sales revenue versus the prior year is a reflection of the market forces that became prevalent in the automotive sector during the second half of 2005".

He also said: "Rising petrol prices have had a significant impact on sales of large cars and SUVs."This had had a flow-on effect on Falcon and Territory sales. Ford sold 53,080 Falcon vehicles during 2005, for a 33 per cent share of the large-car market.

Territory remained Australia’s top-selling SUV, with 23,454 vehicles sold during the year, which also gave the company a 33 per cent share of the medium SUV segment. The company’s overall market share was 12.7 per cent, down from 14.2 per cent in 2004.