FORD Earned $2.6 Billion 2cnd Quarter

[csv8]

DEARBORN, Mich. — The Ford Motor Company on Friday said it earned $2.6 billion in the second quarter and expected to have more cash than debt by the end of 2011.

It was the fifth consecutive quarterly profit and best earnings report in more than six years for Ford, whose turnaround has been gaining momentum as it has increased sales and market share in the United States.

Ford, the only Detroit automaker not to file for bankruptcy protection or receive emergency federal aid, said it expected to be profitable in the second half of this year and deliver even stronger results in 2011. It said second-half profit in 2010 would be less than the $4.7 billion it earned in the first six months, however, due to seasonal changes in demand and new product introductions.

“We delivered a very strong second quarter and first half of 2010 and are ahead of where we thought we would be despite the still-challenging business conditions,” Ford’s chief executive, Alan R. Mulally, said in a statement. “Our progress is being led by the strength of our new products and our leaner, global structure.”

Excluding special items, Ford earned $2.9 billion before taxes, or 68 cents pa share. A year ago on that basis, the company lost $554 million, or 21 cents per share.

It earned $2.1 billion from its automotive operations, including $1.9 billion in North America, compared with losses a year ago. All other regions also were profitable

The automaker’s financing arm, Ford Motor Credit Company, earned $888 million. Executives said Ford Credit is not expected to perform as well in the second half but that it would finish the year more profitable than 2009.

Ford reported positive cash flow of $2.6 billion in the second quarter, leaving a total of $21.9 billion in reserves as of June 30. In 2008, Ford was burning through nearly $2 billion of its cash every month.

But the company ended the quarter with $27.3 billion in debt, even after paying down $7 billion. Executives said Ford would move into a net cash position by the end of next year.

Executives said Ford would move into a net cash position by the end of next year but declined to reveal specific plans to pay down more debt.

Ford carries considerably more debt than its cross-town rivals, which were able to wipe out much of their obligations through the bankruptcy process.

Ford’s sales in the United States rose 28 percent in the first half of 2010, nearly double the industry average. Its market share rose to 16.9 percent, from 16.4 percent a year earlier.

Sales across the industry have slowed in recent months, though, raising concerns about the economic recovery.

Ford now expects all automakers to sell between 11.5 million and 12 million vehicles in the United States this year, its chief financial officer, Lewis W. K. Booth, told reporters. Previously, Ford had expected industrywide sales to be as high as 12.5 million. In the first half, automakers were on pace for about 11.4 million sales in the United States. (Before the recession, new vehicle sales in the United States topped 17 million a year for most of the last decade.)

But Ford does not believe the economy is stalling.

“It’s a slow recovery, but we think it’s sustainable,” Mr. Booth said.

Mr. Booth said Ford expects to spend about $1 billion more on steel and other raw materials this year than in 2009 due to rising prices.

The company recently began selling its new subcompact car, the Ford Fiesta, and has several important model introductions on the horizon, including the Ford Explorer crossover vehicle and the Ford Focus compact car.

[phillyc]

Originally Posted by csv8

DEARBORN, Mich. — The Ford Motor Company on Friday said it earned $2.6 billion in the second quarter and expected to have more cash than debt by the end of 2011.

It was the fifth consecutive quarterly profit and best earnings report in more than six years for Ford, whose turnaround has been gaining momentum as it has increased sales and market share in the United States.

Ripper result! Double what was rumoured

[Scott]

They really are doing well - good on them!

Originally Posted by csv8

It earned $2.1 billion from its automotive operations, including $1.9 billion in North America, compared with losses a year ago. All other regions also were profitable

Brilliant.

[Fordman]

Excellent news!!!

[fordv8!]

yes!!! well done ford

[jpd80]

Every region of Ford around the globe all made a profit, Well done Ford.

A very positive result in indifferent times....

[deesun]

Originally Posted by jpd80

Every region of Ford around the globe all made a profit, Well done Ford.

A very positive result in indifferent times....

Absolutely, and credit where credit is due, but did they do it at the expense of market shere?

[vztrt]

Originally Posted by deesun

Absolutely, and credit where credit is due, but did they do it at the expense of market shere?

They have sold more this year then last year.

[deesun]

Originally Posted by vztrt

They have sold more this year then last year.

That doesn't mean they haven't lost market share. Other manufacturers may have increased their sales by a greater percentage. Ford AU seem to be losing market share every year.

[deesun]

Now can we please concentrate on getting those type of percentage increases here in Australia. Even small ones would be nice. I love the cars but the constant loss of market share irrespective of profit is of a concern. No one seems concerned that Holden makes a loss every year because they know the government will prop it up when it finally calls in the receivers.

[vztrt]

http://www.autoblog.com/2010/07/23/r...uarter-profit/

Report: Ford to report $2.6B second-quarter profit

by Chris Shunk (RSS feed) on Jul 23rd 2010 at 8:31AM

Want more proof that Ford is really starting to pick up some serious momentum? The Wall Street Journal is reporting that The Blue Oval will follow up its $2.1 billion first quarter profits with another $2.6 billion in black ink for the second quarter. That's a far cry from the $424 million the automaker lost in the second quarter of last year and another big step towards sustained financial success. Ford is making money in part because of restructured costs, but also because of increased awareness in its well-reviewed new products.

Ford is looking better on many fronts, including models with more competitive pricing, higher residual values, improved quality and sales increases that are outpacing most of its rivals. Ford now has a competitive small and midsize car lineup for the first time in decades, but the big money is still coming from larger vehicles. F-150 sales, for example, are up 25 percent for the quarter, while Super Duty sales are reportedly up 55 percent. In terms of average transaction prices, another success has been the revamped Taurus, which is fetching a whopping $6,300 more than the outgoing model and $850 more than the average Toyota Avalon.

UPDATE: Ford officially announced earnings of $2.6 billion for Q2, 2010. Revenue for the quarter was $31.1 billion, up from $26.8 billion in Q2, 2009.

[Source: The Wall Street Journal – sub. req.]