Surgen Posted July 26, 2007 Share Posted July 26, 2007 (edited) Read the article - Click here. Download the PDF File - Click here. FORD REPORTS A NET PROFIT OF $750 MILLION FOR Q2 2007 Revenue of $44 billion, 6 percent above second quarter 2006. Net income of $750 million, or 31 cents per share, for the second quarter of 2007. Profit of $258 million, or 13 cents per share, from continuing operations excluding special items.** Significant year-over-year improvement for all Automotive operations. Ford Motor Credit pre-tax profit of $112 million. Cost reductions of $600 million; $1.1 billion through the first half of 2007. Automotive gross cash at June 30, 2007 of $37.4 billion (including cash and cash equivalents, net marketable securities, loaned securities and short-term Voluntary Employee Benefits Association (VEBA) assets).*** Edited July 26, 2007 by staff Added link to story Quote Link to comment Share on other sites More sharing options...
Harley Lover Posted July 26, 2007 Share Posted July 26, 2007 I love it. I had been reading opinions from "experts" that Ford would lose $1.8 billion for the quarter. I don't think anyone expected results this favorable this soon. It's only one quarter, but still...I love it! Quote Link to comment Share on other sites More sharing options...
Joe771476 Posted July 26, 2007 Share Posted July 26, 2007 Is this for real? If so, break out the champagne! Quote Link to comment Share on other sites More sharing options...
LincolnV Posted July 26, 2007 Share Posted July 26, 2007 Wow - I don't think anyone saw this coming. After all the doom and gloom of late, its nice that there are some surprises. Quote Link to comment Share on other sites More sharing options...
ironhorse Posted July 26, 2007 Share Posted July 26, 2007 Dealer inventories are lower than normal due to better RETAIL sales...dealer orders are up...Ford's costs are down...I expected Ford to do well this quarter. Quote Link to comment Share on other sites More sharing options...
Arniect Posted July 26, 2007 Share Posted July 26, 2007 Yes it is true. Great news, a step in the right direction. Made even sweeter because the so called "experts" on wall street never saw it coming. One qtr does not mean a lot, but it is a huge boost for Ford. The vultures may start to circle elsewhere. Quote Link to comment Share on other sites More sharing options...
igor Posted July 26, 2007 Share Posted July 26, 2007 where is PCSARIO now? oh yeah HIDING ... cause he was WRONG ... the profits is INCLUDING SPECIAL ITEMS .. eat that "analysts" and "realists" (well some of them anyways). Igor Quote Link to comment Share on other sites More sharing options...
Gnostic Posted July 26, 2007 Share Posted July 26, 2007 where is PCSARIO now? oh yeah HIDING ... cause he was WRONG ... the profits is INCLUDING SPECIAL ITEMS .. eat that "analysts" and "realists" (well some of them anyways). Igor Special items include the sale of Astin. So in this case they increased the profit. They still lost in NA. Quote Link to comment Share on other sites More sharing options...
Eel Posted July 26, 2007 Share Posted July 26, 2007 FORD REPORTS A NET PROFIT OF $750 MILLION Revenue of $44 billion, 6 percent above second quarter 2006. Net income of $750 million, or 31 cents per share, for the second quarter of 2007. Profit of $258 million, or 13 cents per share, from continuing operations excluding special items.** Significant year-over-year improvement for all Automotive operations. Ford Motor Credit pre-tax profit of $112 million. Cost reductions of $600 million; $1.1 billion through the first half of 2007. Automotive gross cash at June 30, 2007 of $37.4 billion (including cash and cash equivalents, net marketable securities, loaned securities and short-term Voluntary Employee Benefits Association (VEBA) assets).*** http://media.ford.com/article_display.cfm?article_id=26364 Another positive is that market share was up also. This is great news and should be welcome by all Blue Oval fans. I hope Ford can build on this. Quote Link to comment Share on other sites More sharing options...
TStag Posted July 26, 2007 Share Posted July 26, 2007 Excellent news as long as the UAW doesn't use this as leverage against ford in negotiations. Good performance from NA. Yes everywhere else is also doing well but Ford needed this from NA more than anywhere. Presumable we can expect more new models soon, so hopefully we can say panic nearly over? Interesting to read that Ford is looking at Volvo again, I wonder if currency problems are begining to bite at Volvo? The reports suggests they maybe and Volvo have said US profits were cut in half because of currency fluctuations. Will see if I can find that report again......Just wish Ford broke profits and losses down by brand. Quote Link to comment Share on other sites More sharing options...
range Posted July 26, 2007 Share Posted July 26, 2007 Dealer inventories are lower than normal due to better RETAIL sales...dealer orders are up...Ford's costs are down...I expected Ford to do well this quarter. And quality is at 'Toyota levels', with the Fusion / Milan / MKZ / Explorer / Expedition all besting their Toyota and Lexus counterparts Quality on the Rise – Ford, Lincoln and Mercury brands had an impressive performance in the recent GQRS study, improving by 144 “Things Gone Wrong” (TGWs) per 1,000 vehicles to 1,419 – or 1.419 defects per vehicle. This score positions Ford and Lincoln Mercury within a fraction of one problem per vehicle (.057) to Toyota. The survey average for TGW performance was 1.447 problems per vehicle. In addition, Ford and Lincoln Mercury’s customer satisfaction rating climbed 2 percentage points to 75 percent. Quote Link to comment Share on other sites More sharing options...
one2gamble Posted July 26, 2007 Share Posted July 26, 2007 (edited) this is awesome news but and its financial services arm turned a pretax profit of $105 million, down from $425 million in the same quarter last year. whats up with the roughly 75% decline? Edited July 26, 2007 by one2gamble Quote Link to comment Share on other sites More sharing options...
igor Posted July 26, 2007 Share Posted July 26, 2007 this is awesome news butwhats up with the roughly 75% decline? Ford Credit as part of Ford Motor suffers from junk credit . .their borrowing is extremely expensive unless it is secured ... the Ford Credit earnings will not improve until Ford Motor credit is upgraded .. and that will probably not happen for about another year or two. Igor Quote Link to comment Share on other sites More sharing options...
Michael Reynolds Posted July 26, 2007 Share Posted July 26, 2007 Even without the sale of Aston Martin, it wouldn't have been as dismal as some made it out to be. Having said that I hope the building momentum of late doesn't slow down anytime soon. Quote Link to comment Share on other sites More sharing options...
one2gamble Posted July 26, 2007 Share Posted July 26, 2007 Ford Credit as part of Ford Motor suffers from junk credit . .their borrowing is extremely expensive unless it is secured ... the Ford Credit earnings will not improve until Ford Motor credit is upgraded .. and that will probably not happen for about another year or two. Igor grazie Quote Link to comment Share on other sites More sharing options...
wescoent Posted July 26, 2007 Share Posted July 26, 2007 Here's the breakdown by business group: North America: 279 million loss/ 18.0 billion in revenue/ -1.55% South America: 255 million profit/ 1.8 billion in revenue/ 14.17% Europe: 262 million profit/ 9.2 billion in revenue/ 2.85% PAG: 140 million profit/ 8.4 billion in revenue/ 1.67% Asia/Pac/Africa: 26 million profit/ 1.7 billion in revenue/ 1.03% Quote Link to comment Share on other sites More sharing options...
wescoent Posted July 26, 2007 Share Posted July 26, 2007 Growth by business group (revenue/profit): North America: -1.5%/even South America: 38%/100% Europe: 23%/41% PAG: 8%/(no profit change figure) Asia/Pac/Africa: -5%/(no profit change figure) Quote Link to comment Share on other sites More sharing options...
Mark8LSC CE0464 Posted July 26, 2007 Share Posted July 26, 2007 Rock on! This should be a BIG morale boost! I know it is just one quarter, but hell after 7 quarters of losses I'm happy! If the sale of Aston was a "special" item, I think the profit is without regard to that sale. :happy feet: Quote Link to comment Share on other sites More sharing options...
Ford Jellymoulds Posted July 26, 2007 Share Posted July 26, 2007 Great set of results keep it up, not much of a mention for any FOE models in the minutes, no mention of the Transit van of the year that quietly props up FOE, it deserved a mention on the corporate website. Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted July 26, 2007 Share Posted July 26, 2007 This is great news....i was secretly thinking that with the sale of aston martin this may happen....but even without the sale....they lost less by a bit than last quarter...slwow improvement is happening...and there wont be such a cash burn at this rate....seems a few negative people were wrong....its kind of a shame that this will make some of them sad... Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted July 26, 2007 Share Posted July 26, 2007 This is great news....i was secretly thinking that with the sale of aston martin this may happen....but even without the sale....they lost less by a bit than last quarter...slwow improvement is happening...and there wont be such a cash burn at this rate....seems a few negative people were wrong....its kind of a shame that this will make some of them sad... It looks like the entire AM sale wasn't booked this quarter. The press release said their profits before special items was still around $250M, so it looks like they only booked at most $500M of the AM sale this quarter. PAG brought in another $140M. They are getting rid of 2/3 of it why again? You'd think they'd at least try to hold off until the XF debuts to see what effect it has on Jaguar's profits/losses. Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted July 26, 2007 Share Posted July 26, 2007 (edited) It looks like the entire AM sale wasn't booked this quarter. The press release said their profits before special items was still around $250M, so it looks like they only booked at most $500M of the AM sale this quarter. PAG brought in another $140M. They are getting rid of 2/3 of it why again? You'd think they'd at least try to hold off until the XF debuts to see what effect it has on Jaguar's profits/losses. Your right...I just saw that...they still made 258 mill before the sale...that is really good...if they can get rid of the boat anchors we may be in for more clear sailing...i think pag would have made more without them...on aanother note...i just saw an article saying ford expects the third quarter to be difficult.... http://money.cnn.com/news/newsfeeds/articl...56_FORTUNE5.htm Edited July 26, 2007 by suv_guy_19 Quote Link to comment Share on other sites More sharing options...
igor Posted July 26, 2007 Share Posted July 26, 2007 It looks like the entire AM sale wasn't booked this quarter. The press release said their profits before special items was still around $250M, so it looks like they only booked at most $500M of the AM sale this quarter. PAG brought in another $140M. They are getting rid of 2/3 of it why again? You'd think they'd at least try to hold off until the XF debuts to see what effect it has on Jaguar's profits/losses. they are getting rid of all of pag - including Volvo - they confirmed it in the release: http://media.ford.com/article_display.cfm?article_id=26364 With regard to Jaguar and Land Rover, the company confirmed it is currently exploring in greater detail the potential sale of the combined business and is in discussions with selected parties who have expressed interest. The company also is conducting a strategic review of Volvo that likely will conclude prior to year-end. and as reported previously - the reason is not CASH .. the reason is 2 fold: 1) so Ford can focus on Ford - FoMoCo is close to broke and itneeds the money for FORD vehicles .. not Jaguar 2) so PAG brands can realize their full potential - so they are not hindered by Ford's problems ..AM asked to be sold for that very reason . .Ford is getting rid of the other three on its own, but the reasoning remains http://business.guardian.co.uk/story/0,,2135296,00.html In a statement issued today, Ford said: "We are pleased with the positive expressions of interest in the business we have received and in the strength and quality of the interested parties. "We are now exploring in greater detail the potential sale of the combined Jaguar Land Rover business with selected parties who have expressed interest." Ford said that no final decision had been made about the future of the two brands but that if it did sell Jaguar and Land Rover it would be to allow it to concentrate on its core business. Ford said a sale would also seek to ensure that "Jaguar/Land Rover has the ownership and technology and investment structure it needs to allow it to reach its full potential". Igor Quote Link to comment Share on other sites More sharing options...
bolita Posted July 26, 2007 Share Posted July 26, 2007 they are getting rid of all of pag - including Volvo - they confirmed it in the release: http://media.ford.com/article_display.cfm?article_id=26364 and as reported previously - the reason is not CASH .. the reason is 2 fold: 1) so Ford can focus on Ford - FoMoCo is close to broke and itneeds the money for FORD vehicles .. not Jaguar 2) so PAG brands can realize their full potential - so they are not hindered by Ford's problems ..AM asked to be sold for that very reason . .Ford is getting rid of the other three on its own, but the reasoning remains http://business.guardian.co.uk/story/0,,2135296,00.html Igor Makes sense... FoMoCo focusing on Ford and building the brand back. I am not sure about unloading Volvo though, as I really don't think it takes too much ford's focus. They're pretty independant - as is Mazda... In any case, I am happy for the news, at least the media can give ford a rest for a few months. It was made pretty clear that SUSTAINABLE PROFITABILITY will come in 2009, so some quarters posting loss won't be unexpected. Finally, pretty amazing results from South America. If you think about this point, 5-6 years ago, Ford was thinking about pulling out and look were they are now! Quote Link to comment Share on other sites More sharing options...
630land Posted July 26, 2007 Share Posted July 26, 2007 Looks like dumping the DN101 Taurus and loss leading rental sales helped. Quote Link to comment Share on other sites More sharing options...
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