RangerM Posted November 2, 2009 Share Posted November 2, 2009 Time to pay down some of that debt, build up the "rainy day" fund, or invest in some more R&D. Ford Motor posts $1 billion profit; says it will be solidly profitable in 2011. DEARBORN, Mich. (AP) - Ford Motor posts $1 billion profit; says it will be solidly profitable in 2011. Quote Link to comment Share on other sites More sharing options...
dwford Posted November 2, 2009 Share Posted November 2, 2009 No, no, no. Time to restore all those union givebacks. They "deserve" it. Quote Link to comment Share on other sites More sharing options...
move4ward Posted November 2, 2009 Share Posted November 2, 2009 I don't put too much weight in a profitable quarter that was funded by the federal government. Ford made a profit because of Cash for Clunkers that gave them record sales in the 3rd quarter. Otherwise, it would have been another money losing quarter. Losses will be back in the 4th quarter without C4C. They still need to pay back the debt they accumulated to survive during their $14.5 billion losses last year. Quote Link to comment Share on other sites More sharing options...
hindy Posted November 2, 2009 Share Posted November 2, 2009 No, no, no. Time to restore all those union givebacks. They "deserve" it. Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted November 2, 2009 Share Posted November 2, 2009 Cool. Quote Link to comment Share on other sites More sharing options...
ausrutherford Posted November 2, 2009 Share Posted November 2, 2009 Time for a party! maybe a parade! Quote Link to comment Share on other sites More sharing options...
Pioneer Posted November 2, 2009 Share Posted November 2, 2009 No, no, no. Time to restore all those union givebacks. They "deserve" it. You truly don't understand why the Union voted no. Let's not turn this thread into another fight, please. Quote Link to comment Share on other sites More sharing options...
twmalonehunter Posted November 2, 2009 Share Posted November 2, 2009 I don't put too much weight in a profitable quarter that was funded by the federal government. Ford made a profit because of Cash for Clunkers that gave them record sales in the 3rd quarter. Otherwise, it would have been another money losing quarter. Losses will be back in the 4th quarter without C4C. They still need to pay back the debt they accumulated to survive during their $14.5 billion losses last year. You really aren't too informed...........C4C had little to do with Ford's profit, cost cutting was much more important and will be in the future. Pay attention to the forward looking comments, sounds cautiously optimistic to say the least. Quote Link to comment Share on other sites More sharing options...
2005Explorer Posted November 2, 2009 Share Posted November 2, 2009 No, no, no. Time to restore all those union givebacks. They "deserve" it. Moving production of some of their most important vehicles (the mid-sized car lines) to Mexico a few years ago looks like a smarter decision each day. Quote Link to comment Share on other sites More sharing options...
97svtgoin05gt Posted November 2, 2009 Share Posted November 2, 2009 I think this profit is a result of a multi-tier approach to business. Mulally has been cutting costs on a consistant basis. They've also idled plants and reduced the workforce in painful steps to assist the company in the harsh economic climate. At the same time, C4C arrived at a time when significant cost cutting measures had been implemented. This coupled with Fords new models being brought out with stunning reviews and public awareness that Ford took no gov mint funds to survive all contributed in my opinion. Regardless of how we got there, its great news that should be celebrated. Congrats to everyone on a job well done. Lets hope we can keep it rolling. Quote Link to comment Share on other sites More sharing options...
Pioneer Posted November 2, 2009 Share Posted November 2, 2009 Moving production of some of their most important vehicles (the mid-sized car lines) to Mexico a few years ago looks like a smarter decision each day. So, we want to make this thread a free-for-all too? Are you sure? I guess we could have another thread closed. Up to you guys. Personally, I would rather just talk about how Ford is doing well. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted November 2, 2009 Share Posted November 2, 2009 record sales in the 3rd quarter Ford, as a whole, did not have a record setting 3rd quarter. BTW: Every geographic unit turned a profit. Probably the first time that's happened in a decade or more. Absent C4C, I'd say Ford at least breaks even in NA and still turns in a decent profit world wide. Net margin on NA volume is quite narrow (less than 3%), and if the interest costs for NA loans were booked against NA operations (instead of broken out separately) Ford likely would not have turned a profit in NA. Quote Link to comment Share on other sites More sharing options...
ANTAUS Posted November 2, 2009 Share Posted November 2, 2009 When they post a profit for the whole year, then it's time for a party, but as it stands, there's some time to go before that occurs. Quote Link to comment Share on other sites More sharing options...
weiweishen Posted November 2, 2009 Share Posted November 2, 2009 When they post a profit for the whole year, then it's time for a party, but as it stands, there's some time to go before that occurs. If Ford post positive/or very small negative for the 4th Quarter, then the whole year profit will be possible. Let's see the sales data tomorrow, it can give some hint. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted November 2, 2009 Share Posted November 2, 2009 Bear in mind, though, that the Q2 profit was strictly due to a change in liabilities, not favorable business results. Quote Link to comment Share on other sites More sharing options...
BrewfanGRB Posted November 2, 2009 Share Posted November 2, 2009 I love this for a number of reasons but 2 (ok, 3) stick out in my mind: 1) It tells the public what Ford's been saying all along and what many in the public think already: See? We had a plan, it was painful for our workers, but we are making it work on our own---and we're MAKING MONEY w/o government help. 2) It sets the stage for investor confidence---Ford can now do (if they choose) another debt for equity swaps, using the power of that confidence (investors are more and more likely to believe Ford's stock will appreciate and are more willing to swap debt for equity). That also means swaps are generally less dilutive if the stock continues to appreciate (sure, I own less of Ford if they issue more shares, but less debt should mean an increase in share price, I get that "loss" back that much quicker--if I am existing shareholder). 3) It provides increasingly greater flexibility for Ford---to make the investments in plants, to stay the course of continuous improvement/redesign in it's vehicles, etc. I may be overstating one quarter of profit---but I really don't think I am when comparing Ford to the industry. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted November 2, 2009 Share Posted November 2, 2009 I may be overstating one quarter of profit---but I really don't think I am when comparing Ford to the industry. Well, it may be overstating the results of the quarter, but the details of this quarter's results are pretty telling about where things could be headed going into next year, which is starting to look very positive. Quote Link to comment Share on other sites More sharing options...
akent1936 Posted November 2, 2009 Share Posted November 2, 2009 I'll take a win over a loss any day of the week. Quote Link to comment Share on other sites More sharing options...
92merc Posted November 2, 2009 Share Posted November 2, 2009 I just hope the public and media realize this is the fruit of 2 years worth of work. It wasn't a quick fix like some are thinking will work at GM/Chryco. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted November 2, 2009 Share Posted November 2, 2009 Two years? heck. Try five or six. Quote Link to comment Share on other sites More sharing options...
Griffin Posted November 2, 2009 Share Posted November 2, 2009 Without government help? did they not last or the previous receive a loan of 6.9billon for retooling of plants to build more fuel efficient cars!. That loan flew under the radar of the public, and I bet any other future loans will as well. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted November 2, 2009 Share Posted November 2, 2009 (edited) Without government help? did they not last or the previous receive a loan of 6.9billon for retooling of plants to build more fuel efficient cars!. That loan flew under the radar of the public, and I bet any other future loans will as well. Those loans were offered from the Department of Energy, and were available to all automakers for the development of more efficient vehicles. It was not in any sense of the word a "bailout", which is why it went under everyone's radar, as it should have. There's a heck of a big difference between guaranteed loans with special interest rates (which private banks often offer to preferred customers during healthier financial times) than free handouts in exchange for government ownership. Edited November 2, 2009 by NickF1011 Quote Link to comment Share on other sites More sharing options...
aneekr Posted November 2, 2009 Share Posted November 2, 2009 Bear in mind, though, that the Q2 profit was strictly due to a change in liabilities, not favorable business results. That was driven largely by the approx. $3.4 billion gain on debt-reduction actions that showed up on the income statement for Q2, correct? This makes the positive cash flow in Q3 even more meaningful. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted November 2, 2009 Share Posted November 2, 2009 That was driven largely by the approx. $3.4 billion gain on debt-reduction actions that showed up on the income statement for Q2, correct? This makes the positive cash flow in Q3 even more meaningful. Yes and yes. Ford was cash flow neg. during Q2 Quote Link to comment Share on other sites More sharing options...
dwford Posted November 3, 2009 Share Posted November 3, 2009 You truly don't understand why the Union voted no. Let's not turn this thread into another fight, please. OK, I'll bite. Why did the Union vote no? Quote Link to comment Share on other sites More sharing options...
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