Ford Post Q2 Profit

[Trainman]

Good for Ford, and with no handouts either.  See, it can be done.  lets hope they can keep going in the right direction:


Ford posts surprise Q2 profit
Last Updated: Thursday, July 23, 2009 | 8:35 AM ET
The Associated Press
http://www.cbc.ca/money/story/2009/07/23/ford-earnings.html

Helped by a lightened debt load, Ford Motor Co. posted a surprise second-quarter profit of $2.8 billion US Thursday, following the worst loss in company history a year earlier.

The net profit ends a string of four straight quarterly losses for the country's second-largest automaker, which has gained U.S. market share at the expense of crosstown rivals Chrysler Group LLC and General Motors Co., both of which spent time under bankruptcy court supervision. Ford last went into the black in the first quarter of 2008, with net profit of $70 million.

However, excluding its debt reduction and other items, Dearborn, Mich.-based Ford would have reported a quarterly loss, though smaller than Wall Street expected.

Chief financial officer Lewis Booth said the improved second-quarter results are a sign that the company's cost cuts and emphasis on new products are paying off. He stuck to Ford's earlier prediction that it would return to annual profitability in 2011.

Profit hinged on debt reduction

"We're 18 months away, I guess," he told reporters on Thursday, adding that a full year of profitability hinges on improved auto sales in the U.S. and Europe.

Ford reported second-quarter net income of 69 cents a share, compared to a loss of $8.7 billion, or $3.89 a share, for the same quarter a year ago.

The profit came because of a $3.4-billion gain due to debt reduction. In March, Ford swapped stock and cash to reduce its loan and bond debt by $7.7 billion. The company has cut its debt by $10.1 billion for 2009, and is likely to take further steps this year to lower debt and raise cash.

But excluding special items, including the debt reduction, Ford would have lost $424 million, or 21 cents a share. Still, that beat analysts' expectations of a per-share loss of 50 cents on revenue of $24.7 billion. Excluding special items, the company lost just over $1 billion in the second quarter of last year.

'Continue to make really good progress'

Ford spent $1 billion more in cash than it earned in the quarter, compared to $1.4 billion in the first quarter of 2009.

Revenue totalled $27.2 billion, $11 billion less than a year earlier.

Ford is predicting a modest improvement in U.S. sales next year to about 12.2 million light vehicles. Sales so far this year have run below an annual rate of 10 million.

The company said it made $1.8 billion in structural cost cuts during the second quarter, with $1.2 billion coming in North America.

"We continue to make really good progress on cost reductions," Booth said.

[Juke1]

That ought to quiet the skeptics   Good on them, nice reliable products and more to come, looking good.  Had the opportunity to sit in a Fusion Hybrid, what an improvement in the fit and finish over the previous version.

[Honda Owner]

Good on Ford! What an excellent model for our domestic corporate welfare warriors to follow!

Unfortunately, said corporate welfare is in fact penalising profitable companies like Ford and Honda.

[Arthur Dent]

Accounting slight of hand - they actually lost money - debt reduction is hardly income. Still they are doing well all things considering.

[UmroAyyar]

Ford has been tipped to overcome its difficulties while GM and Chrysler floundered.

A bit better news in dismal times for the industry.

[Allen]

I give Ford alot of credit for where they have got to 

[rrocket]

Great news!!

[Patate]

Good on Ford! What an excellent model for our domestic corporate welfare warriors to follow!

Unfortunately, said corporate welfare is in fact penalising profitable companies like Ford and Honda.

If you were working for those corporations on welfare, you'd be happy.

And as far as I'm concern, Honda's posting losses too... hardly profitable.

[articsteve]

Good for Ford, and with no handouts either.  See, it can be done.

Ford applied for up to $11 billion in loans, but instead it was awarded $5.9 billion in financing.

http://moneynews.newsmax.com/companies/ford_motor/2009/06/23/228077.html

[articsteve]

Accounting slight of hand - they actually lost money - debt reduction is hardly income. Still they are doing well all things considering.

$424 million pre-tax operating loss on net income of $2.3 billion.

Today, Ford has $25.8 billion in automotive debt — much of which was accumulated to raise cash so the company could survive the economic downturn that it correctly forecast several years ago . . .

What’s more, Ford’s debt level could reach $36 billion by 2011, when Ford expects to be profitable again, Citibank analyst Itay Michaeli said in an interview with the Free Press. That is about four times more than Ford’s expected earnings. Healthy automotive companies usually carry about twice as much debt as earnings, he said.

There will never be enough capacity for 3 domestic car companies.  By temporarily saving Chrysler the US government may have killed Ford.  All for the sake of a mediocre Italian company.  Quite insane.

[mmret]

But excluding special items, including the debt reduction, Ford would have lost $424 million, or 21 cents a share. Still, that beat analysts' expectations of a per-share loss of 50 cents on revenue of $24.7 billion. Excluding special items, the company lost just over $1 billion in the second quarter of last year.

Not so hot.

$1b loss excl one-time items is right on 50 cts/share...cash number is the same too.

[toolatecrew]

How long until the CAW is in the media saying:

"There is absolutley no need to discuss giving Ford similar concessions to Chrysler and GM. Ford made 2.8 billion in profit last quater thanks to our exceptionally skilled workforce building quality cars. "

[Thinking Out Loud]

How long until the CAW is in the media saying:

"There is absolutley no need to discuss giving Ford similar concessions to Chrysler and GM. Ford made 2.8 billion in profit last quater thanks to our exceptionally skilled workforce building quality cars. "

And the opposite to that argument by the 1" deep thinkers at the CAW would be:

"Ford went bankrupt because of poor vehicle design that no one wanted, not due to higher-quality-UNION-made-therefore-Toyota-and-Honda-must-build-crap" excuse.

Either way the CAW wins.  When things suck, it's managements fault.  When things are rocking, SUPERIOR UNION MADE PRODUCTS are clearly the reason, not management's planning.

Wait.....that is every unions arguement....

 

[The Mighty Duck]

Accounting slight of hand - they actually lost money - debt reduction is hardly income. Still they are doing well all things considering.

Correct. That said, they did secure some valuable reductions, which is good. Ford is doing quite well all things considered, though.

[Wolverine]

Noticed that Ford stocks are on a rise for more than 2 months, were as low as 1.2 and now passed the 8.3 mark.