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mustang84

Ford posts $2.3 Billion PROFIT!!

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http://www.facebook.com/ext/share.php?sid=...6mce&ref=nf

DETROIT -- Ford Motor Co. returned to profitability in its second quarter and slowed its cash burn amid speculation that it may issue more equity to reduce its debt.

The auto maker reported a net income of $2.3 billion or 69 cents a share, compared with a loss of $8.67 billion, or $3.89 a share, for the same period a year earlier. The company burned through about $1 billion in cash during the quarter as it controlled incentive spending around ...

I got this from their Facebook link...the article kind of cuts off. And I hear July sales are going to be a blowout too!

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Now this is good news!

If we can just get GM profitable, things may start looking very, very good.

Chris :convertible:

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Go Ford! Now we gotta see if GM can turn it around...

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Ford did NOT have an operating profit you guys know. It would have had a loss of i believe half a billion without one time events. Still, they have managed to get their cash burn rate under control it seems. Next step is paying off their debt.

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Yeah I know, but the positive headlines generated by the media seeing Ford post a profit far surpass any positive headlines the competition may have. Ford looks like a hero, GM and Chrysler look like their waiting for a welfare check to come in the mail.

Edited by Brougham-Holiday
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Yeah I know, but the positive headlines generated by the media seeing Ford post a profit far surpass any positive headlines the competition may have. Ford looks like a hero, GM and Chrysler look like their waiting for a welfare check to come in the mail.

Depending on government loans to Ford (and assuming no mass exodus of US buyers from "Government Motors" to Ford), Ford will probably go bankrupt in 2011 (if not earlier). They may find themselves wishing they had managed to go through the quick bankruptcy now with GM and Chrysler rather than take their chances when the economy might be a little better. I doubt GM would have got the "kid glove treatment" that they did if the economy had been strong.

Ford: 21 Billion in cash, 13 billion away from being unable to operate, blowing 500 Million/Q, and with a number of significant obligations including a 10 billion line of credit due in 2011, 11 billion outstanding to VEBA, 6 billion from the government and misc billions coming due now and then.

The new Taurus isn't THAT good of a car ;)

Edited by GXT
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Depending on government loans to Ford (and assuming no mass exodus of US buyers from "Government Motors" to Ford), Ford will probably go bankrupt in 2011 (if not earlier). They may find themselves wishing they had managed to go through the quick bankruptcy now with GM and Chrysler rather than take their chances when the economy might be a little better. I doubt GM would have got the "kid glove treatment" that they did if the economy had been strong.

Ford: 21 Billion in cash, 13 billion away from being unable to operate, blowing 500 Million/Q, and with a number of significant obligations including a 10 billion line of credit due in 2011, 11 billion outstanding to VEBA, 6 billion from the government and misc billions coming due now and then.

The new Taurus isn't THAT good of a car ;)

BUT, as Ford stock starts to appear appealing Ford can leverage the capital markets by issuing more stock. They can perhaps do some debt-equity swaps and other measures to reduce debt loads. Ford can still avoid bankruptcy, but it wont be easy.

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Depending on government loans to Ford (and assuming no mass exodus of US buyers from "Government Motors" to Ford), Ford will probably go bankrupt in 2011 (if not earlier). They may find themselves wishing they had managed to go through the quick bankruptcy now with GM and Chrysler rather than take their chances when the economy might be a little better. I doubt GM would have got the "kid glove treatment" that they did if the economy had been strong.

Ford: 21 Billion in cash, 13 billion away from being unable to operate, blowing 500 Million/Q, and with a number of significant obligations including a 10 billion line of credit due in 2011, 11 billion outstanding to VEBA, 6 billion from the government and misc billions coming due now and then.

The new Taurus isn't THAT good of a car ;)

I think you're being overly pessimistic, GXT.

Ford's cash burn has dropped dramatically since last year, and sales are up dramatically. The 500 million quarterly loss isn't a constant...they will continue to chip away and turn losses into profits. It's also very likely they will do another debt-for-equity swap like they did in May, which had a two day down effect on stock prices before they shot up higher than before. Don't forget that Volvo is also on the chopping block and will raise a few billion. I doubt Ford will let that brand go for the $2.2 billion Geely originally offered.

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I'd look at cash flow from operations more than at profits/losses.

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