Post by TonyV on Apr 27, 2010 10:24:48 GMT -5
Last Updated: April 27. 2010 8:52AM .
Ford reports $2.1 billion profit; will boost production
Bryce G. Hoffman / The Detroit News
Ford Motor Co., whose sales surged 37 percent in the first three months of the year, today reported a profit of $2.1 billion for that period -- its fourth quarterly profit in a row.
Excluding special charges and taxes, Ford's operating profit was $2 billion, or 46 cents a share. Wall Street was hoping for 31 cents a share, according to a survey of a dozen analysts conducted by Thomson Reuters.
It was Ford's highest quarterly operating profit in six years and compared with a net loss of $1.43 billion a year earlier.
The company was profitable in its key North American market, but it also made money in Asia, South America and Europe.
"The Ford team around the world achieved another very solid quarter, and we are delivering profitable growth," CEO Alan Mulally said. "Our plan is working, and the basic engine that drives our business results -- products, market share, revenue and cost structure -- is performing stronger each quarter, even as the economy and vehicle demand remain relatively soft."
In a sign of its confidence in the economic recovery, Ford said it's boosting North American production in the second quarter to 625,000 vehicles, a 9 percent increase over first-quarter levels. The increase could mean additional hiring by Ford, but Chief Financial Officer Lewis Booth said today it's too early to say if the company will be adding workers.
Last year, Ford lost more than $1.4 billion in the first quarter. The company credited its success to improved vehicle sales, continued streamlining of its global automotive operations and profit from its lending arm, Ford Credit.
"We are seeing the benefits of our 'One Ford' plan around the world," said Booth. "All of our business operations -- North America, South America, Europe, Asia Pacific Africa and Ford Credit --- were not only profitable, but also showed substantially improved results over a year ago."
Worldwide, Ford's automotive business reported a pre-tax operating profit of $1.2 billion, compared with a loss of $2 billion a year ago thanks to continuing net pricing gains, higher sales volumes and a stronger mix.
Ford sold 1.3 million cars and trucks globally, up from 986,000 in the first three months of 2009, pushing automotive revenue to $25.4 billion from $21 billion during the same period last year.
In North America, Ford posted a pre-tax operating profit of more than $1.2 billion, compared with a loss of $665 million a year ago. First quarter revenue increased by $4.1 billion year-over-year to $14.1 billion.
Europe also returned to the black, posting an operating profit of $107 million, compared with a loss of $585 million a year ago. First quarter revenue was $7.7 billion, up from $5.8 billion in the first three months of 2009.
South America reported a profit of $203 million, up from $63 million for the same period in 2009. Revenue in the region climbed to $2 billion from $1.4 billion last year.
In Asia, the Pacific and Africa, Ford's operating profit was $23 million, up from a loss of $97 million a year ago. First quarter revenue increased to $1.6 billion from $1.2 billion a year ago.
Ford Credit reported a pre-tax operating profit of $828 million, up from a loss of $36 million in the first quarter of 2009. Ford attributed the improvement to lower depreciation expenses for leased vehicles -- thanks to higher auction values -- and a lower provision for credit losses.
Ford reported a one-time gain of $188 million related to the sale of its Volvo brand to Geely Holding Group, which was completed at the end of March. That was offset by a $63 million loss from personnel reductions and dealer payments.
Ford, which was the only Detroit automaker to avoid bankruptcy and forgo a government bailout in 2009, has emerged from the recent downturn in the automobile industry as the strongest domestic car company. It also has been a big beneficiary of Toyota Motor Corp.'s recent woes, thanks to the improved quality of its vehicles.
As a result, Ford has been steadily gaining market share, both in the United States and abroad. It is anticipating good things from the launch of its subcompact Fiesta this year.
The market had been anticipating good numbers from the Dearborn automaker. Ford shares hit a new 52-week high of $14.57 Monday.
Ford returned to profitability last year with earnings of more than $2.7 billion.
"We believe Ford has the liquidity and clean balance sheet to drive continued earnings improvement," said analyst Erich Selle of J.P. Morgan. "By 2011, Ford should be able to consistently generate cash due to production efficiencies, structural savings and working capital benefits."
Ford said it is off to a stronger start than it expected in 2010, and now expects to be solidly profitable with positive automotive cash flow, putting it ahead of its 2011 goal.
"We remain cautiously optimistic about positive signs emerging in the global economy, while knowing that the recovery is fragile and the global auto industry continues to deal with excess capacity," Mulally said. "For us, the most important thing we can do is to stay focused and continue to make progress on our plan."
The Associated Press contributed. bhoffman@detnews.com (313) 222-2443
Ford reports $2.1 billion profit; will boost production
Bryce G. Hoffman / The Detroit News
Ford Motor Co., whose sales surged 37 percent in the first three months of the year, today reported a profit of $2.1 billion for that period -- its fourth quarterly profit in a row.
Excluding special charges and taxes, Ford's operating profit was $2 billion, or 46 cents a share. Wall Street was hoping for 31 cents a share, according to a survey of a dozen analysts conducted by Thomson Reuters.
It was Ford's highest quarterly operating profit in six years and compared with a net loss of $1.43 billion a year earlier.
The company was profitable in its key North American market, but it also made money in Asia, South America and Europe.
"The Ford team around the world achieved another very solid quarter, and we are delivering profitable growth," CEO Alan Mulally said. "Our plan is working, and the basic engine that drives our business results -- products, market share, revenue and cost structure -- is performing stronger each quarter, even as the economy and vehicle demand remain relatively soft."
In a sign of its confidence in the economic recovery, Ford said it's boosting North American production in the second quarter to 625,000 vehicles, a 9 percent increase over first-quarter levels. The increase could mean additional hiring by Ford, but Chief Financial Officer Lewis Booth said today it's too early to say if the company will be adding workers.
Last year, Ford lost more than $1.4 billion in the first quarter. The company credited its success to improved vehicle sales, continued streamlining of its global automotive operations and profit from its lending arm, Ford Credit.
"We are seeing the benefits of our 'One Ford' plan around the world," said Booth. "All of our business operations -- North America, South America, Europe, Asia Pacific Africa and Ford Credit --- were not only profitable, but also showed substantially improved results over a year ago."
Worldwide, Ford's automotive business reported a pre-tax operating profit of $1.2 billion, compared with a loss of $2 billion a year ago thanks to continuing net pricing gains, higher sales volumes and a stronger mix.
Ford sold 1.3 million cars and trucks globally, up from 986,000 in the first three months of 2009, pushing automotive revenue to $25.4 billion from $21 billion during the same period last year.
In North America, Ford posted a pre-tax operating profit of more than $1.2 billion, compared with a loss of $665 million a year ago. First quarter revenue increased by $4.1 billion year-over-year to $14.1 billion.
Europe also returned to the black, posting an operating profit of $107 million, compared with a loss of $585 million a year ago. First quarter revenue was $7.7 billion, up from $5.8 billion in the first three months of 2009.
South America reported a profit of $203 million, up from $63 million for the same period in 2009. Revenue in the region climbed to $2 billion from $1.4 billion last year.
In Asia, the Pacific and Africa, Ford's operating profit was $23 million, up from a loss of $97 million a year ago. First quarter revenue increased to $1.6 billion from $1.2 billion a year ago.
Ford Credit reported a pre-tax operating profit of $828 million, up from a loss of $36 million in the first quarter of 2009. Ford attributed the improvement to lower depreciation expenses for leased vehicles -- thanks to higher auction values -- and a lower provision for credit losses.
Ford reported a one-time gain of $188 million related to the sale of its Volvo brand to Geely Holding Group, which was completed at the end of March. That was offset by a $63 million loss from personnel reductions and dealer payments.
Ford, which was the only Detroit automaker to avoid bankruptcy and forgo a government bailout in 2009, has emerged from the recent downturn in the automobile industry as the strongest domestic car company. It also has been a big beneficiary of Toyota Motor Corp.'s recent woes, thanks to the improved quality of its vehicles.
As a result, Ford has been steadily gaining market share, both in the United States and abroad. It is anticipating good things from the launch of its subcompact Fiesta this year.
The market had been anticipating good numbers from the Dearborn automaker. Ford shares hit a new 52-week high of $14.57 Monday.
Ford returned to profitability last year with earnings of more than $2.7 billion.
"We believe Ford has the liquidity and clean balance sheet to drive continued earnings improvement," said analyst Erich Selle of J.P. Morgan. "By 2011, Ford should be able to consistently generate cash due to production efficiencies, structural savings and working capital benefits."
Ford said it is off to a stronger start than it expected in 2010, and now expects to be solidly profitable with positive automotive cash flow, putting it ahead of its 2011 goal.
"We remain cautiously optimistic about positive signs emerging in the global economy, while knowing that the recovery is fragile and the global auto industry continues to deal with excess capacity," Mulally said. "For us, the most important thing we can do is to stay focused and continue to make progress on our plan."
The Associated Press contributed. bhoffman@detnews.com (313) 222-2443
