Ford Ireland returns to pre-tax profit

The Irish arm of motor giant Henry Ford last year returned to pre-tax profit after revenues increased by 10.5% to €192m.

In accounts filed by the Cork-based Henry Ford & Son Ltd, the company recorded a pre-tax profit of €1.55m in the 12 months to the end of December last after experiencing a pre-tax loss of €956,000 in 2010.

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

Overall, figures from the Society of the Irish Motor Industry show that new car sales in Ireland last year increased marginally from 88,446 in 2010 to 89,878 — an increase of 1.6%.

Ford’s main Irish unit paid a dividend of €70m during the year, reducing shareholder funds from €76m to €1.9m.

Operating losses reduced by 77% last year, from €1.9m to €441,000.

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

The company’s cost of sales last year rose from €165.7m to €182.7m with gross profit increasing from €8.1m to €9.4m.

Ford Ireland made a €4.3m loss for the year after an actuarial loss of €6.2m on its pension scheme is taken into account.