Helped by a lightened debt load, Ford Motor Co. posted a surprise second-quarter profit of $2.8 billion Thursday, following the worst loss in company history a year earlier. Shares rose more than 6 percent in morning trading.And not a bailout in sight.
The net profit ends a string of four straight quarterly losses for the nation’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.
“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.
Good for them. I've had a pretty good experience with my Ford product, and given the way they've stood up for themselves during this crisis, I'd buy one again.
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2 comments:
Ford has done brilliantly through this financial crisis. They will come through this much stronger than the other car makers.
Ford has a good policy in this crisis and show better result among its competitors.
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