Posted tagged ‘Ford Motor Company’

Ford Posts Profit of Nearly $1 Billion

November 2, 2009

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.

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General Motors CEO Rick Wagoner to Step Down

March 29, 2009

General Motors CEO Rick Wagoner will step down after more than eight years with the company.

From Bloomberg:

General Motors Corp. Chief Executive Officer Rick Wagoner will step down after more than eight years running the largest U.S. automaker, people familiar with the situation said.

The people, who asked not to be named because the announcement hasn’t been made, didn’t give a reason why Wagoner, 56, is leaving. Wagoner said as recently as March 19 that he didn’t plan to resign.

From the New York Times:

The chairman and chief executive of General Motors, Rick Wagoner, is resigning, just as President Obama prepares to unveil his rescue plans on Monday for G.M. and the ailing American auto industry, according to a person close to the decision.

The unexpected move by Mr. Wagoner, who has been at the helm of G.M. for eight years, was not confirmed by the company. But a statement about Mr. Wagoner’s future will be issued after the president’s address.

G.M. and Chrysler are on the verge of exhausting the $17.4 billion in federal loans given to them since December. G.M. has asked for up to $16.6 billion more, and Chrysler another $5 billion.

The president’s auto task force is expected to recommend more short-term assistance to the two Detroit companies, but with tight strings attached to the money and a new deadline to get concessions from union workers and creditors.

Ford Motor Company Reports Huge Losses…Will Cut Jobs

November 7, 2008

The Ford Motor Company reported a $3 billion quarterly operating loss this morning and said it would reduce its staff and capital spending in order to preserve its dwindling cash.

From CNN Money:

Ford said it would cut salaried employment costs by 10% – reducing compensation of its white collar workers by eliminating merit pay, bonuses and the company’s matching contributions to their retirement accounts.

But even with those savings, the company said it’s likely to lay off more salaried staffers. It also said hourly staff – mostly factory workers covered by union contracts – would be reduced by an additional 2,600 through a voluntary buyout package.

The company, which earlier this year sold brands such as Jaguar and Land Rover, said it would continue to look to sell assets.

Ford Chief Executive Alan Mulally warned that while the company is confident that it is taking the right steps to respond to the downturn, it does not see a quick turnaround in demand for autos in either North America or Europe.

“We believe the downturn in industry volume will be broader, deeper and longer than previously expected,” he said during a conference call. Sales volume isn’t expected to improve until 2010, he said.

Ford’s loss came to $1.31 a share, excluding special items, far worse than the penny a share loss it reported on that basis a year earlier. Analysts surveyed by earnings tracker Thomson Reuters had forecast a loss of 93 cents a share.

The company had a one-time gain of $2.2 billion, related to the accounting of its retiree health care expenses. With that gain, it reported a net loss of $129 million, or 6 cents a share, an improvement from the $380 million, or 19 cents a share, it lost on that basis a year earlier.