Signs of life for the American automobile industry: Ford posts a profit

[scheming daemons]

Yes... it was mainly due to restructuring. But guess what... you CAN have UAW workers and all the contracts involved with them and still have a business model that works, even during an economic downturn.

GM and Chrysler's problems were due to piss-poor management... not due to "burdensome union contracts" or "government regulations".

All the right-wingers who say the American Car Industry can't succeed because of too much government regulation and union influence have been proven wrong.

Proven wrong by a forward-looking and properly-managed AMERICAN car company, Ford.

(personally, I have never owned a Ford... but my opinion on that is coming around.)


http://www.cnbc.com/id/32088589

Ford Motor posted a $2.3 billion quarterly net profit, mainly due to debt restructuring, and said it was on track to at least break even in 2011, sending its shares up more than 9 percent.

Ford posted an operating loss for the quarter that was better than analysts expected, excluding a net gain of $2.8 billion from one-time items that included the debt reduction actions, despite reeling global markets that helped push U.S. rivals General Motors and Chrysler into bankruptcy.

The automaker said it expects the U.S. economy to begin to recover in the second half of this year.

"Despite the really tough economic environment our plan is working and the underlying business is improving," Chief Financial Officer Lewis Booth told reporters. "We continue to make really good progress on cost reductions," Booth said. "You can now see the results of the operations focused on cash."
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[Freddie Stubbs]

1. And Ford never asked the government for bailout money

[susanna]

2. I worked there for 16 years.

I personally believe you are correct. That place didn't begin to change its ways (crappy management) until Alan Mulally came in. Best decision they ever made, IMHO.

Still a fan and still have a lot of friends there. Glad to see the momentum shifting for them!

[MercutioATC]

3. They actually LOST a billion dollars...

The "profit" was an accounting adjustment.


"But excluding special items, including the debt reduction, Ford would have lost $424 million, or 21 cents a share. Still, the results 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.

Revenue totaled $27.2 billion, 40 percent less than a year earlier as the worldwide auto sales slump continued.

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

http://finance.yahoo.com/news/Debt-reduction-pushes-Ford-to-apf-176681451.html?x=0&.v=21


That said, they didn't lose as much in Q2 as they did in Q1.

[marketcrazy1]

4. signs of continuing struggle for U.S. Auto industry........ N/T..

[Historic NY]

5. I bought a new GM last friday. They, not the dealer called & thanked me.

They got some nice 10's out now & mileage rates is in the 30's on many of them on the highway.

[MrsBrady]

6. i heard that they really traded stock for cash, but they didn't really earn any money...

and they didn't have to ask for a bailout, because they secured their loans before the shit hit the fan.