Ford Posts Profit of Nearly $1 Billion

Ford, the only automaker to dodge direct government aid and bankruptcy court, surprised investors this morning with a net income of nearly $1 billion in the third quarter.

Where did that come from???

From the Associated Press:

The automaker said Monday earnings were fueled by U.S. market share gains, cost cuts and the Cash for Clunkers program, which drew flocks of buyers to showrooms this summer. Ford’s shares rose 68 cents, or 9.8 percent, to $7.68 in morning trading.

The latest results signal that Ford’s turnaround is on more solid ground. The company lost more than $14.6 billion last year and hasn’t posted a full-year profit since 2005. While it made a profit in the second quarter, that was mainly due to debt reductions that cut its interest payments.

Ford, based in Dearborn, Mich., reported third-quarter net income of $997 million, or 29 cents per share. Its profit forecast for 2011 was a step above previous guidance of break-even or better for the year.

Ford’s key North American car and truck division posted a pretax profit of $357 million, the division’s first quarter in the black since early 2005. Ford cited higher pricing, lower material costs and increased market share for the improvement.

Excluding one-time items, Ford earned 26 cents per share, blowing away analysts’ expectations of a loss of 12 cents.

The earnings came despite an $800 million revenue drop. But Ford said it cut costs by $1 billion during the quarter, accomplished through layoffs in North America and Europe, reduced pension and retiree health care costs and improvements in productivity and product development.

Advertisements
Explore posts in the same categories: Uncategorized

Tags: , , , , , , , , , , , , ,

You can comment below, or link to this permanent URL from your own site.

2 Comments on “Ford Posts Profit of Nearly $1 Billion”

  1. Michelle Says:

    Definitely a cost cut fueled profit. American motor companies have a long road ahead of them.

  2. Honeydog0629 Says:

    Can’t Deny this is quite an Accomplishment, and although they were Righteous in Admitting the Methods by which they Obtained it, it was hugely due to Imposing considerable Misfortune to their Workers and Retirees who lost their Jobs and the Benefits they Depended-on. Would be Good now to make-up for that and continue to stay on Track.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s


%d bloggers like this: