Ford posts PROFIT!
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From: Pewee Valley, KY
Ford posts PROFIT!
http://www.earthtimes.org/articles/s...q2-profit.html
Ford surprises markets with 2.3 billion dollar Q2 profit
New York - Ford Motor Co. had good news for the crisis- ridden US car industry Thursday, reporting a 2.3 billion dollar profit in the second quarter of 2009 thanks to one-time items. The figure compares with the 8.7 billion dollars in losses which th...
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New York - Ford Motor Co. had good news for the crisis- ridden US car industry Thursday, reporting a 2.3 billion dollar profit in the second quarter of 2009 thanks to one-time items. The figure compares with the 8.7 billion dollars in losses which the Detroit, Michigan-based concern had posted in the second quarter last year.
In its ongoing operations, Ford lost 638 million dollars in the quarter, cutting the red ink by half from the losses in the previous year period, a performance surpassing analysts' expectations.
Sales, however, reflected the crisis in the industry, plunging one-third to 27.2 billion dollars in the second quarter.
The profit was the result of a one-time 2.8 billion-dollar gain chiefly from having reduced its debts by 7.7 billion dollars, Ford said.
Ford is the only one among the big three carmakers - the others being General Motors and Chrysler - to refrain from state rescue support as it seeks to turn its fortunes around.
New York - Ford Motor Co. had good news for the crisis- ridden US car industry Thursday, reporting a 2.3 billion dollar profit in the second quarter of 2009 thanks to one-time items. The figure compares with the 8.7 billion dollars in losses which th...
Print this article email this article Comment on this article
New York - Ford Motor Co. had good news for the crisis- ridden US car industry Thursday, reporting a 2.3 billion dollar profit in the second quarter of 2009 thanks to one-time items. The figure compares with the 8.7 billion dollars in losses which the Detroit, Michigan-based concern had posted in the second quarter last year.
In its ongoing operations, Ford lost 638 million dollars in the quarter, cutting the red ink by half from the losses in the previous year period, a performance surpassing analysts' expectations.
Sales, however, reflected the crisis in the industry, plunging one-third to 27.2 billion dollars in the second quarter.
The profit was the result of a one-time 2.8 billion-dollar gain chiefly from having reduced its debts by 7.7 billion dollars, Ford said.
Ford is the only one among the big three carmakers - the others being General Motors and Chrysler - to refrain from state rescue support as it seeks to turn its fortunes around.
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Joined: May 2004
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From: Shelbyville, IN
Good for Ford, looks like they still would have had a loss if not for some one time deals... but STILL. It's looking better for them! I pray they can stay afloat and prove that at least one US Car Company can be managed correctly.
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Joined: Jul 2005
Posts: 9,507
From: Okemos, MI
Did anyone (other than Chrome383Z) actually read the article? This isn't awesome news, it's carefully timed execution of a strategy designed to make it sound like awesome news.
They renegotiated some of their debt (a one-time thing, not repeatable and not a result of good sales), which improved the balance sheet by 2.8 billion dollars. The final result was 2.3 billion dollars profit for the quarter. Excluding one-time losses and gains, that means that their operations lost $500 million this quarter.
It's nice that they made a profit, but this is just news -- not good news.
They renegotiated some of their debt (a one-time thing, not repeatable and not a result of good sales), which improved the balance sheet by 2.8 billion dollars. The final result was 2.3 billion dollars profit for the quarter. Excluding one-time losses and gains, that means that their operations lost $500 million this quarter.
It's nice that they made a profit, but this is just news -- not good news.
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Joined: Oct 2004
Posts: 1,296
From: Beaumont, TX
No, not really:
http://www.leftlanenews.com/ford-pos...ket-share.html
http://www.leftlanenews.com/ford-pos...ket-share.html
Ford posts $424M Q2 loss but gains market share
07/23/2009, 9:07 AM
By Andrew Ganz
Ford says it is posting a second quarter post-tax operating loss of $424million, excluding special items, ($638 million post-tax) but the automaker says it is on track to be profitable by 2011. That compares favorably with last year’s $1.4 million loss during the same period despite dramatically reduced industry-wide sales.
Ford says it gained market share in all of its regions and that it posted a net profit of $2.3 billion due to debt-reduction actions. The automaker also burned through less of its cash reserves – $1 billion in the second quarter compared to $3.7 billion in the first quarter and $7.2 billion in the last quarter of 2008.
Total revenue dropped 29 percent to $27.2 billion. Ford says it has about $21 billion in reserves, down a bit from the $21.3 billion it had at the end of the first quarter. Analysts say that Ford needs about $10 billion to operate.
“Because the second quarter cash was so good, we’re not sure we’re going to get a sequential improvement in the third quarter,” Ford CFO Lewis Booth said in an interview with the media, though he confirmed that Ford expects to burn less cash overall in the second half of the year.
Ford Credit posted a pre-tax profit of $646 million.
Ford’s Volvo unit, which the automaker is still attempting to sell, loss $231 million on its own – up from the $120 million it lost a year ago. Revenue was down $1.4 billion to $2.9 billion.
07/23/2009, 9:07 AM
By Andrew Ganz
Ford says it is posting a second quarter post-tax operating loss of $424million, excluding special items, ($638 million post-tax) but the automaker says it is on track to be profitable by 2011. That compares favorably with last year’s $1.4 million loss during the same period despite dramatically reduced industry-wide sales.
Ford says it gained market share in all of its regions and that it posted a net profit of $2.3 billion due to debt-reduction actions. The automaker also burned through less of its cash reserves – $1 billion in the second quarter compared to $3.7 billion in the first quarter and $7.2 billion in the last quarter of 2008.
Total revenue dropped 29 percent to $27.2 billion. Ford says it has about $21 billion in reserves, down a bit from the $21.3 billion it had at the end of the first quarter. Analysts say that Ford needs about $10 billion to operate.
“Because the second quarter cash was so good, we’re not sure we’re going to get a sequential improvement in the third quarter,” Ford CFO Lewis Booth said in an interview with the media, though he confirmed that Ford expects to burn less cash overall in the second half of the year.
Ford Credit posted a pre-tax profit of $646 million.
Ford’s Volvo unit, which the automaker is still attempting to sell, loss $231 million on its own – up from the $120 million it lost a year ago. Revenue was down $1.4 billion to $2.9 billion.
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Joined: Sep 2004
Posts: 1,448
From: Irving, TX
Funny how the articles are so different. But I agree, Ford isn't really making money. In the article that said they did, it was due to debt reductions and not revenue being better than expenses. Basically, there isn't a profit.
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Joined: Mar 2001
Posts: 13,713
From: The Golden State
It doesn't matter a heel of beans whether you want to dissect this news, point out details, or even want to disavow it and say Ford's manipulating numbers.
Facts are these.
1. Ford stock was selling at just under $2 per share earlier this year. It's about to reach $7.
2. Ford restructured a massive amount of debt. Whether Ford has better negotiators, had less debt, or after GM and Chrysler went through bankruptcy, no one wanted to (mess) with Ford is irrelevent.
3. Ford is gaining market share like nobody's business. They are even winning over Toyota buyers (of all people) and is now only about 2% market share of matching GM.... assuming GM loses no more market share (extremely unlikely once Pontiac shuts down).
4. Ford is poised to reach gross profits (before taxes) for real within the next 10-12 months if not sooner, and is poised for net profits no later than 2011CY assuming the economy gets no worse than it already is, let alone rebounding. One can only imagine the money machine Ford will become if the economy picks up steam early.
One thing is becoming very clear in recent months. The tide is turning against imported cars. If the momentum continues, although the US car market will never recover the car volume it used to sell ("over sell" is more like it), I think that all 3 are in great position to compete with just about anyone.
Facts are these.
1. Ford stock was selling at just under $2 per share earlier this year. It's about to reach $7.
2. Ford restructured a massive amount of debt. Whether Ford has better negotiators, had less debt, or after GM and Chrysler went through bankruptcy, no one wanted to (mess) with Ford is irrelevent.
3. Ford is gaining market share like nobody's business. They are even winning over Toyota buyers (of all people) and is now only about 2% market share of matching GM.... assuming GM loses no more market share (extremely unlikely once Pontiac shuts down).
4. Ford is poised to reach gross profits (before taxes) for real within the next 10-12 months if not sooner, and is poised for net profits no later than 2011CY assuming the economy gets no worse than it already is, let alone rebounding. One can only imagine the money machine Ford will become if the economy picks up steam early.
One thing is becoming very clear in recent months. The tide is turning against imported cars. If the momentum continues, although the US car market will never recover the car volume it used to sell ("over sell" is more like it), I think that all 3 are in great position to compete with just about anyone.
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Joined: Nov 2001
Posts: 1,178
From: Payson, AZ USA
Thank you.
There are folks on GMI who are still insisting that Ford is incredibly stupid, because they didn't do the smart thing.............. like GM did............... and go BK.
Sometimes you just have to shake your head.
There are folks on GMI who are still insisting that Ford is incredibly stupid, because they didn't do the smart thing.............. like GM did............... and go BK.
Sometimes you just have to shake your head.
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Joined: Sep 2004
Posts: 1,448
From: Irving, TX
I think Ford had a good luck with their timing of their loans and coming out with some excellent product. If they get the same concessions from the UAW that GM and Chrysler had, they are going to have no problems going forward.
They have some of the best products out right now as well. That Ford Fusion looks great. I won't be in the car market for about 2 years, but Ford will likely be on the list.
They have some of the best products out right now as well. That Ford Fusion looks great. I won't be in the car market for about 2 years, but Ford will likely be on the list.
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Joined: Mar 2005
Posts: 3,123
From: Melbourne, Australia
God bless Ford and their PR department. It seems Ford can do no wrong. "Underpromise and overdeliver". Everything Ford touch turns to gold these days.
If I can be serious for a moment... considering Ford aren't expected in the black until around 2011, doesn't it make some people want to read the article a bit more carefully?
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Joined: Nov 2001
Posts: 1,178
From: Payson, AZ USA
I think that most people have read the article, or one of the articles, as there are many out there. They realize that Ford had an operational loss of $424 million, and that they burned through $1 Billion of cash in the quarter.
However, based on the economy, and the times, and everything that they have no control over, Ford made tremendous progress.
You have to remember that this quarters performance is against a quarter, when auto sales were still projected to be 16 million or so, for the year. They have sold a huge amount less, than they did last year, in a brutal market, and are still making the great progress that they said they would.............. and noone believed.
The truth is, in this market, losing less means winning.
However, based on the economy, and the times, and everything that they have no control over, Ford made tremendous progress.
You have to remember that this quarters performance is against a quarter, when auto sales were still projected to be 16 million or so, for the year. They have sold a huge amount less, than they did last year, in a brutal market, and are still making the great progress that they said they would.............. and noone believed.
The truth is, in this market, losing less means winning.
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Joined: Mar 2005
Posts: 3,123
From: Melbourne, Australia
But the headline is a little misleading. I don't know if that's Ford's PR people's work or just the media twisting the news.
There's too much of these 'creative accounting' news editorials floating around... that tend to mislead people. And some of us car nuts have been misled.
It doesn't need to be like that, is my basic point.