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AutoBlog: Ford posts $1 billion in profit, surprisingly good third quarter report

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Filed under: Ford, Earnings/Financials

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Surprising news comes courtesy of Ford this morning in the form of an unexpectedly good third quarter report. The Blue Oval posted $997 million in positive net income over the third quarter, which represents its first operating profit in over a year. Even better news is that Ford's success was driven in part by actual product sales, with market share increasing in North America, South America and Europe.

Ford finished the third quarter with $23.8 billion in Automotive gross cash, which is $2.8 billion better than how it finished the previous quarter. Ford Credit, the financial arm of the automaker's operations, also posted relatively good numbers in the third quarter of 2009 with an after-tax profit of $427 million. Though Ford is selling fewer vehicles overall from the heyday of the early 2000s, its off-lease models aren't depreciating as rapidly as before and are selling for higher transaction prices at auction.

While making nearly a billion dollars in the third quarter of 2009 is welcome news, the automaker still has a tough road ahead in the coming years. In recognition of this fact, Ford isn't predicting solid profitability and consistently positive operating cash flow until 2011. For all the mind-numbing details, hit the jump for the full press release from Ford.

[source: Ford]

Continue reading Ford posts $1 billion in profit, surprisingly good third quarter report

Ford posts $1 billion in profit, surprisingly good third quarter report originally appeared on Autoblog on Mon, 02 Nov 2009 10:55:00 EST. Please see our terms for use of feeds.

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In the past few years when Ford turned a profit it was typically due to its overseas operations while North America lost money, but this quarter North American operations turned a $357 million profit for the first time since 2005.

Breakdown by region:

North America: $357 million profit, up from a loss of $2.6 billion a year ago

Europe: $193 million profit, up from a $69 million profit a year ago

South America: $247 million profit, down from a $480 million profit a year ago, mostly due to unfavorable exchange rates in Argentina and Brazil

Asia Pacific Africa: $27 million profit, up from a $4 million profit a year ago

Volvo: $135 million loss, vs. a $458 million loss a year ago

Ford Credit: $677 million profit, up from a $161 million profit a year ago

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I really hate to rain on Ford's parade (God knows Detroit could use some good news for a change!), but a one quarterly profit means nothing. It just means someone stood over the accounting department and told them to shuffle off anything that looked bad so we can give the shareholders (and the pack of jackals that pass as media these days) some good news.

Ford's debt load is crushing. The UAW smells blood. Ford is far from being out of the woods yet. Yeah, they never took any handouts from Washington, but that's only because they managed to hock the family jewels before the money markets crashed. See if they could borrow billions in today's market...

I wish them all the luck, but the fact is Toyota could buy Ford and GM for what their executives spend on toilet paper in a month. Until the public wakes up and realizes the other shoe hasn't dropped yet, Detroit is not safe. Not by a long shot.

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Love the good news but...yes, CARBIZ...your correct as usual.

Chris

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I really hate to rain on Ford's parade (God knows Detroit could use some good news for a change!), but a one quarterly profit means nothing. It just means someone stood over the accounting department and told them to shuffle off anything that looked bad so we can give the shareholders (and the pack of jackals that pass as media these days) some good news.

Ford's debt load is crushing. The UAW smells blood. Ford is far from being out of the woods yet. Yeah, they never took any handouts from Washington, but that's only because they managed to hock the family jewels before the money markets crashed. See if they could borrow billions in today's market...

I wish them all the luck, but the fact is Toyota could buy Ford and GM for what their executives spend on toilet paper in a month. Until the public wakes up and realizes the other shoe hasn't dropped yet, Detroit is not safe. Not by a long shot.

Why would they want their profits to seem better than they are, while trying to get concessions from the UAW? Wouldn't they want their profits to look worse than they are?

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Why would they want their profits to seem better than they are, while trying to get concessions from the UAW? Wouldn't they want their profits to look worse than they are?

1) Wall Street is notoriously impatient. GM has been given a clean slate by Obama; Ford has not. Ford has to perform or face a shareholder revolt. GM has no shareholders other than various governments and the UAW to worry about. It has always been about the short-sightedness of Wall Street. This is a fundamental reason GM got itself into this mess in the first place; whereas Toyota and Honda can skirt short term issues.

2) Ford has done an excellent job of distancing itself from the other two beggars on the street in Detroit, and this has been a bit of a PR coup for them. It is important to send a message that their strategy is working.

The UAW will sabre rattle, that is its mandate; however, in the end, they wouldn't dare strike Ford. I am sure Mullaly has shown the books to the UAW brass. What the UAW is doing now for the media is making itself look useful.

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I agree that Ford isn't out of the woods yet, but I don't think this quarter was a fluke. Mullally knows what he is doing and has got Ford going in the right direction. Plus, the Fiesta isn't here yet, and that might be their best product.

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I agree that Ford isn't out of the woods yet, but I don't think this quarter was a fluke. Mullally knows what he is doing and has got Ford going in the right direction. Plus, the Fiesta isn't here yet, and that might be their best product.

I knew the '86 Taurus. The '86 Taurus was a friend of mine. Mr. Fiesta, You're no '86 Taurus.

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1) Wall Street is notoriously impatient. GM has been given a clean slate by Obama; Ford has not. Ford has to perform or face a shareholder revolt. GM has no shareholders other than various governments and the UAW to worry about. It has always been about the short-sightedness of Wall Street. This is a fundamental reason GM got itself into this mess in the first place; whereas Toyota and Honda can skirt short term issues.

2) Ford has done an excellent job of distancing itself from the other two beggars on the street in Detroit, and this has been a bit of a PR coup for them. It is important to send a message that their strategy is working.

The UAW will sabre rattle, that is its mandate; however, in the end, they wouldn't dare strike Ford. I am sure Mullaly has shown the books to the UAW brass. What the UAW is doing now for the media is making itself look useful.

This all sounds very familiar. Recent in fact. :AH-HA_wink:

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I agree that Ford isn't out of the woods yet, but I don't think this quarter was a fluke. Mullally knows what he is doing and has got Ford going in the right direction. Plus, the Fiesta isn't here yet, and that might be their best product.

I agree, I don't think it was a fluke either.

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I agree, I don't think it was a fluke either.

It may or may not be a fluke but this was just as ambiguous.

http://www.nytimes.com/2007/03/14/business...gm.4909727.html

These were peppered throughout the past few years accompanied by other good news that at the time people considered positive and that Rick Wagoner knew what he was doing and that the right product was in the pipeline. What happened? Hurricanes, oil, subprime calamity. What else? Not enough time or space to gt into that and maybe not ever find a correct answer without the added benefit of hindsight. But at the time..

The best thing Ford has going for them is the timing may be a little better but the playbook is very similar whether you see it or not.

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