DEARBORN (dpa-AFX) - Ford Motor Co. (F), the second largest U.S. automaker, said Tuesday that it expects its worldwide sales to increase by about 50% to about 8 million vehicles a year by the middle of the decade.
Much of that sales growth will be driven by quick expansion in the developing markets, recovery in mature markets and sales of smaller and more fuel-efficient vehicles, the Dearborn, Michigan-based automaker said.
In a presentation to financial analysts led by Ford President and CEO Alan Mulally, the company said it is well positioned to grow profitably.
Ford said it expects its global automotive operating margins to increase to 8% to 9% by mid-decade from 6.1% in 2010, with North America operating margin in the 8% to 10% range at mid-decade.
The company also said small vehicles will account for about 55% of its total vehicle sales by 2020, with nearly one-third of sales coming from Asia Pacific Africa at that time.
'Ford is a growing company operating in a growing global automotive market,' Mulally said. 'Through our One Ford plan, we are increasing our product investments to meet this growing demand with a full family of best-in-class products.'
Additionally, Ford said that it will pay down an additional $2.3 billion of the term loans under its secured credit agreement in the second quarter, and that it repaid the remaining $800 million drawn amount of its revolving credit line.
The company expects to reduce its total automotive debt to about $10 billion by mid-decade, down from $16.6 billion at the end of the first quarter of 2011 and from $33.6 billion at the end of 2009.
Ford said it expects to achieve investment grade in the near-term, and to start paying dividends at an appropriate level of after-tax earnings.
Ford stopped paying a dividend in the fourth quarter of 2006 as part of an overall restructuring, as the company struggled with a slowdown in vehicle sales.
Ford was less ravaged by the recession than most of its peers. It was also the only major U.S. automaker to avoid bankruptcy and not to have availed U.S. government bailout funds during the financial crisis.
The automaker has reported a profit for each of its last seven quarters. In April, Ford reported a 22% rise in first quarter profit, driven mainly by higher demand for its fuel-efficient cars such as Fiesta and Fusion and improved pricing.
Ford shares, which have traded in a range of $9.75 to $18.87 over the past year, closed Tuesday's regular trading session at $13.95, up 4 cents.
Copyright RTT News/dpa-AFX
