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Ford Projects $8bn Operating Profit In 2011

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14 years ago

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Ford Motor Company is expected to post its biggest annual profit in a decade on recently, after lowering operating costs and increasing sales to make it Number two in the United States market, newsmen.

Ford’s anticipated annual operating profit of about $8bn would be its best showing since a $10.2bn profit in 2000, when US industry auto sales were 33 per cent higher.

Making profit at a lower sales volume has been one of the keys to the company’s strategy since Chief Executive Alan Mulally, arrived in October 2006.

It is the second straight year of profit for Ford, which showed a loss of $30bn from 2006 to 2008.

Mulally and Executive Chairman, Bill Ford, said that now the company has gone from fighting for its survival to expanding profitably around the globe.

Investors will look on for updates from Ford executives on steps toward a return to an investment-grade credit rating, which it has not had since May 2005.

Ford cut its net automotive debt in 2010. After it paid debt to a retiree health care trust fund for the United Auto Workers, its key automotive operations had a debt of $22.8bn and cash of $20.3bn.

The company said it will be profitable in 2011, but at a lower level than 2010.

Ford has not forecast when it would return to investment grade. Ratings agencies have raised its grade recently as Ford’s debt has fallen, but it remains two notches below investment grade.

The reshaping of Ford was funded by mortgaging most of the company’s assets to borrow $23.5bn. The move allowed Ford to finance new product development while not having to accept the life-saving government bailouts taken by its US rivals General Motors Company and the Chrysler Group.

Analysts expect the company to show a quarterly profit of 48 cents per share, according to 17 analysts polled by reporters. That would mean a quarterly profit near $1.7bn on revenues of $30.57bn and an annual profit near $8bn.

The range of estimates is from a high of 58 cents per share and a low of 36 cents per share.

Ford’s US sales grew 19.5 per cent in 2010, versus an industry that grew by 11 per cent.

Morningstar analyst David Whiston said he will be watching Ford’s 2011 forecast closely for signals of the automaker’s expectations for commodity prices that could increase sticker prices for its models. He’s also looking to see how high Ford thinks gasoline prices will rise in 2011.

“Can Ford meaningfully grow its car model mix should gas prices rise,” is a key question, said Whiston. “I know they’ve made strides by introducing new small cars like the Focus and the Fiesta, but their US sales are still skewed toward trucks.”

Ford’s US sales of 1.93 million for 2010 were 64 per cent trucks, which include SUVs. Overall, US auto industry sales were about half cars and half trucks in 2010.

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NPA Assures On Staff Welfare 

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7 days ago

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June 27, 2025

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The Managing Director, Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, has said the management will continue to accompany its port infrastructure  and equipment  modernization drive  with the development of the welfare of its personnel.
Dantsoho made the disclosure recently while responding to the commendation by the Maritime Workers Union (MWUN) and the senior Staff Association of Statutory Corporations and Government-Owned Companies (SSASGOC) on the  clearing  of the age-long problem of employee stagnation, when the union paid him a courtesy visit at the Authority’s headquarters in Lagos.
A Statement by NPA’s General Manager Corporate & Strategic Communications, Mr. Ikechukwu Onyemekara, quoted Dantsoho as saying,  “our Port infrastructure and equipment modernization drive will go hand-in-hand with continuous staff welfare improvement”.
The NPA MD disclosed that human capital development constitutes the key strategy for creating and sustaining superior performance under his watch, adding that “talent development constitutes a critical success factor for the actualization of the big hairy audacious goals we have set for ourselves especially in the area of Port competitiveness.
“The only way we can meet and indeed exceed stakeholders’ expectations is to deepen the competencies of our human resources assets and boosting their morale.”
Speaking further, Dantsoho commended the Honourable Minister of Marine & Blue Economy, Adegboyega Oyetola, for approving the strategic proposal of the Dantsoho-led Management team that solved the over a decade-long problem of lack of promotion that had fuelled industrial disharmony.
“I must specially appreciate our amiable Minister for graciously approving the multi-pronged stratagem we deployed that cleared all outstanding cases of employee stagnation by conducting examinations in one fell swoop and instituted timelines to forestall a recurrence of such anomaly”, he sad.
Speaking on behalf of the joint maritime labour unions, the President  of Senior Staff Association of Statutory Corporations & Government-Owned Companies (SSASCGOC), Comrade Bodunde stated, “In addition to clearance of the backlog of stagnated promotions, we also wish to express our appreciation for the increase in productivity bonuses, provision of end-of-year welfare packages for staff, and the revision of the Financial Guide to the Condition of Service, which now addresses our members’ concerns about inflationary pressures.”
Nkpemenyie Mcdominic, Lagos
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ANLCA Chieftain Emerges FELCBA’s VP

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7 days ago

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June 27, 2025

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National Secretary of the Association of Nigerian Licensed Customs Agents (ANLCA), Elder Olumide Fakanlu, has been elected Vice President of the Federation of ECOWAS Licensed Customs Brokers Association (FELCBA).
The election took place during the FELCBA Congress, held from Tuesday, June 17th to Thursday, June 19th, 2025, in Freetown, Sierra Leone.
Fakanlu’s emergence as Vice President marks a significant achievement for Nigeria within the regional customs brokerage community.
Apart from Fakanlu, Secretary of the Seme Chapter of ANLCA, Austin Nwosu, was also elected, securing the role of Secretary of Relations with Institutions.
The Nigerian delegation played an active role in the congress, with Michael Ebeatu nominated as a member of the electoral officer team, ensuring a fair and transparent election process.
The three-day congress concluded with delegates undertaking a visit to the Sierra Leone Port, offering insights into the host nation’s maritime operations, followed by a recreational trip to the Tokeh Beach.
The newly elected executives are expected to lead FELCBA in its efforts to harmonize customs brokerage practices, promote trade facilitation, and advocate for the interests of licensed customs brokers across the ECOWAS sub-region.
Nkpemenyie Mcdominic, Lagos
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NSC, Police Boost Partnership On Port Enforcement 

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7 days ago

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June 27, 2025

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In a bid to enhance more enforcement in the nation’s Port, the Nigerian Shippers’ Council (NSC) has reaffirmed its commitment to stronger inter-agency collaboration with the Nigeria Police Force (NPF).
The Council said the collaboration is aimed at enhancing stronger enforcement, compliance and improve operational efficiency across Nigeria’s ports.
Executive Secretary/Chief Executive Officer of  NSC, Dr. Pius Akutah, made this known during a visit to the  Inspector-General of Police, Dr. Kayode Adeolu Egbetokun, at the Force Headquarters, Abuja.
The visit, which he said, focused on strengthening institutional synergy, comes in the wake of growing responsibilities for the NSC under the newly created Ministry of Marine and Blue Economy.
Akutah emphasized the critical role of security agencies in supporting port operations and ensuring regulatory compliance.
He called for the posting of police officers to assist the Council’s monitoring and enforcement teams at key port locations including Lagos, Warri, Onne, Port Harcourt, and Calabar.
“The posting will complement the activities of our revived task teams and enhance our ability to enforce standards across the maritime logistics chain”, he said.
Earlier, the Inspector-General of Police, Dr. Egbetokun, assured the Council of the Force’s readiness to continue supporting the growth of the maritime sector.
The IGP acknowledged that compliance enforcement is essential to the successful implementation of Nigeria’s Blue Economy objectives.
“The NSC and NPF are expected to deepen collaboration in the months ahead, with a shared focus on building a secure, efficient, and competitive port environment”, to the IGP emphasized.
Chinedu Wosu
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