foxrun Posted July 23, 2010 Share Posted July 23, 2010 Ford profits hit six-year high By Bernard Simon in Toronto Published: July 23 2010 13:31 | Last updated: July 23 2010 13:31 Ford Motor, the US’s second-largest carmaker, on Friday said it expected to hold a net cash position by the end of next year as its operating performance continues to improve. The group, which on Friday reported its highest quarterly profit in six years – its fifth consecutive quarterly profit – said net debt shrank to $5.4bn from $9bn in the second quarter. EDITOR’S CHOICE GM buys AmeriCredit in $3.5bn deal - Jul-22Ford reshuffles senior management - Jul-16Treasury under fire on impact of car rescues - Jul-18Magna investors set to debate shares reform - Jul-22“By the end of 2011, Ford expects to move from a net debt position to a net cash position,” the group said. Ford shares jumped 3.4 per cent to $12.50 on Friday morning, reinforcing their recovery since the bottom of the recession in late 2008 when they sank close to $1. “We are ahead of where we thought we would be despite the still challenging business conditions,” Alan Mulally, chief executive, said, adding that “we expect even better financial results in 2011”. Ford, the only one of the three Detroit carmakers not to accept a government bail-out, has benefited from a steadily improving share of its core North American market and rising transaction prices for its models. The carmaker said its priorities included expansion in China, India and other fast-growing markets; further lowering costs; and strengthening the balance sheet with a view to regaining its investment grade credit rating. Ford on Friday said second-quarter net profit rose to $2.6bn from $2.3bn a year earlier while operating cash flow was $2.6bn. Both far exceeded analyst estimates. Ford’s gross debt, which fell to $27.3bn from $34.3bn, is far higher than General Motors or Chrysler. Ford’s cash reserves stood at $21.9bn at the end of June. Ford’s profits rise was driven mainly by a sharp turnround in North America, where pre-tax operating profit surged to $1.9bn, compared with an $899m loss a year earlier and first-quarter earnings of $1.2bn. A combination of new models, an improved brand image and higher trade-in values have enabled Ford to boost transaction prices. Lewis Booth, chief financial officer, told the Financial Times that customers were also buying more high-margin accessories. Edmunds.com, an online car-buying service, estimates that the average price of an F-Series pick-up, Ford’s top-selling vehicle, rose to $32,759 in the second quarter from $30,602 a year earlier. Ford Europe’s operating profit rose to $322m from $57m a year ago and $107m in the first quarter. The carmaker expects its market share in Europe to be lower this year than in 2009. “We’ve made a conscious decision that we’re going to run the European business for profit rather than for market share,” Mr Booth told the F Quote Link to comment Share on other sites More sharing options...
uawxlt Posted July 23, 2010 Share Posted July 23, 2010 Ford profits hit six-year high By Bernard Simon in Toronto Published: July 23 2010 13:31 | Last updated: July 23 2010 13:31 Ford Motor, the US’s second-largest carmaker, on Friday said it expected to hold a net cash position by the end of next year as its operating performance continues to improve. The group, which on Friday reported its highest quarterly profit in six years – its fifth consecutive quarterly profit – said net debt shrank to $5.4bn from $9bn in the second quarter. EDITOR’S CHOICE GM buys AmeriCredit in $3.5bn deal - Jul-22Ford reshuffles senior management - Jul-16Treasury under fire on impact of car rescues - Jul-18Magna investors set to debate shares reform - Jul-22“By the end of 2011, Ford expects to move from a net debt position to a net cash position,” the group said. Ford shares jumped 3.4 per cent to $12.50 on Friday morning, reinforcing their recovery since the bottom of the recession in late 2008 when they sank close to $1. “We are ahead of where we thought we would be despite the still challenging business conditions,” Alan Mulally, chief executive, said, adding that “we expect even better financial results in 2011”. Ford, the only one of the three Detroit carmakers not to accept a government bail-out, has benefited from a steadily improving share of its core North American market and rising transaction prices for its models. The carmaker said its priorities included expansion in China, India and other fast-growing markets; further lowering costs; and strengthening the balance sheet with a view to regaining its investment grade credit rating. Ford on Friday said second-quarter net profit rose to $2.6bn from $2.3bn a year earlier while operating cash flow was $2.6bn. Both far exceeded analyst estimates. Ford’s gross debt, which fell to $27.3bn from $34.3bn, is far higher than General Motors or Chrysler. Ford’s cash reserves stood at $21.9bn at the end of June. Ford’s profits rise was driven mainly by a sharp turnround in North America, where pre-tax operating profit surged to $1.9bn, compared with an $899m loss a year earlier and first-quarter earnings of $1.2bn. A combination of new models, an improved brand image and higher trade-in values have enabled Ford to boost transaction prices. Lewis Booth, chief financial officer, told the Financial Times that customers were also buying more high-margin accessories. Edmunds.com, an online car-buying service, estimates that the average price of an F-Series pick-up, Ford’s top-selling vehicle, rose to $32,759 in the second quarter from $30,602 a year earlier. Ford Europe’s operating profit rose to $322m from $57m a year ago and $107m in the first quarter. The carmaker expects its market share in Europe to be lower this year than in 2009. “We’ve made a conscious decision that we’re going to run the European business for profit rather than for market share,” Mr Booth told the F thanks for the info still have along way to go before the dance starts Quote Link to comment Share on other sites More sharing options...
Maislebandit Posted July 24, 2010 Share Posted July 24, 2010 Not even a mention about the hourly concessions saving them a ton of $. Just fills my heart with joy that I could help invest in the foreign operations. What a joke. Quote Link to comment Share on other sites More sharing options...
995 Posted July 24, 2010 Share Posted July 24, 2010 Lets not wait till contract time IUAW, lets take a vote now to re-open the contract in our favor to get what we lost back!. I'd love to have my 6 minutes back for break. I don't think I'm asking much am I? 1 Quote Link to comment Share on other sites More sharing options...
uawxlt Posted July 25, 2010 Share Posted July 25, 2010 Lets not wait till contract time IUAW, lets take a vote now to re-open the contract in our favor to get what we lost back!. I'd love to have my 6 minutes back for break. I don't think I'm asking much am I? your asking for the moon sad fact is give it away and you never get it back Quote Link to comment Share on other sites More sharing options...
foxrun Posted July 25, 2010 Author Share Posted July 25, 2010 your asking for the moon sad fact is give it away and you never get it back I remember all the end of the world speeches from union reps only months ago. I guess that was a big oops. Quote Link to comment Share on other sites More sharing options...
Grim Reaper Posted July 25, 2010 Share Posted July 25, 2010 I remember all the end of the world speeches from union reps only months ago. I guess that was a big oops. Well the only way to get these items back we will have to strike. Save your money............Its coming. Quote Link to comment Share on other sites More sharing options...
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