Ford Zooms Past Expectations, Posts Surprise $1 Billion Profit In 3rd Quarter »
Posted By TimALoftis 1 month, 1 week ago in Business & Finance
Ford (F), the only Detroit automaker to dodge direct government aid and bankruptcy court, surprised investors with net income of nearly $1 billion in the third quarter and forecast a "solidly profitable" 2011.
The automaker said Monday earnings were fueled by U.S. market share gains, cost cuts and the Cash for Clunkers program, which drew flocks of buyers to showrooms this summer. Ford's shares rose 68 cents, or 9.8 percent, to $7.68 in morning trading.
The latest results signal that Ford's turnaround is on more solid ground. The company lost more than $14.6 billion last year and hasn't posted a full-year profit since 2005. While it made a profit in the second quarter, that was mainly due to debt reductions that cut its interest payments.
Ford, based in Dearborn, Mich., reported third-quarter net income of $997 million, or 29 cents per share. Its profit forecast for 2011 was a step above previous guidance of break-even or better for the year.
Ford's key North American car and truck division posted a pretax profit of $357 million, the division's first quarter in the black since early 2005. Ford cited higher pricing, lower material costs and increased market share for the improvement.
Read Full Story at dailyfinance.com »
169 Views Share Story 9 Comments Report
Submitted By:
TimALoftis
Wishing All My Friends Here At Propeller The Very Best During This Holiday Season.
HAPPY HOLIDAYS!
Who Also Submitted: All »
RSS Join the Discussion
+ Add CommentComments So Far: 9 (view all)
-
-
100%
simonsez1 month, 1 week ago
This comment is below the standard viewing threshold View It »
Roger Mulally has done a brilliant job of managing the strategic success of Ford.
Reply
When he came on board, he established an early line of credit that allowed the company to weather the storm and now benefits from being the American company that didn't need bailout money. -
100%
vor1 month, 1 week ago
This comment is below the standard viewing threshold View It »
It is the quality of their products much of it taken from existing technology used in Ford Europe products that has made the difference. Plan to new car shop next fall and the 3.5 liter V6 Fusion Sport Coupe is promised a test drive. And I have never bought a new car from an American manufactuer. The new SHO Taurus is also an awesome vehicle. There are no GM models currently on my list.
Reply -
-
17%
tadair9191 month, 1 week ago
This comment is below the standard viewing threshold View It »
the crackpot economics cash for clunkers program's #1, #2, #3, *AND* #4 most common trade-in car was the POS Ford Explorer.
Reply
Guess what new car was most popular in the exchange?
Ford Focus.
Yep. They should have called it "clunkers for clunkers," aka "ford bailout" or "clear the congested ports bailout" or, my favorite, "crackpot keynesianism proves people like free money." -
-
-
Add a Comment
Sign In With Your Propeller Account
Please keep your comments relevant to this story.
To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br /> tags.