SHOCK - Ford posts $2.1 Billion Profit For First Quarter

[jpd80]

FORD POSTS FIRST QUARTER 2010 NET INCOME OF $2.1 BILLION AS STRONG NEW PRODUCTS FUEL PROFITABLE GROWTH+

• Ford reports first quarter net income of $2.1 billion, or 50 cents per share, a $3.5 billion improvement from first quarter 2009. Pre-tax operating profit of $2 billion, or 46 cents per share, a $4 billion improvement from first quarter 2009++
• Ford Automotive operations posted first quarter pre-tax operating profit of $1.2 billion, a $3.2 billion improvement from first quarter 2009++
• Ford North America reported first quarter pre-tax operating profit of more than $1.2 billion, a $1.9 billion improvement from first quarter 2009; Ford Europe earned a pre-tax operating profit of $107 million, a $692 million improvement from a year ago++
• Revenue for the quarter totaled $28.1 billion, a $3.7 billion improvement from first quarter 2009++
• Strong response to new vehicles drove the largest quarterly U.S. market share gain since 1977
• Ended the quarter with $25.3 billion of Automotive gross cash, with operating-related cash outflow of $100 million. Ford ended the quarter with $34.3 billion in Automotive debt
• Ford Motor Credit Company reported first quarter pre-tax operating profit of $828 million, an $864 million improvement from first quarter 2009
• Based on Ford’s improving performance, the gradually strengthening economy, and its present assumptions, Ford now expects to deliver solid profits this year with positive Automotive operating-related cash flow

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DEARBORN, Mich., April 27, 2010 – Ford Motor Company [NYSE: F] today reported first quarter 2010 net income of $2.1 billion, or 50 cents per share, a $3.5 billion improvement from first quarter 2009, as strong selling new products, improvements in its global Automotive operations, and higher profits at Ford Credit boosted results.

Excluding special items, Ford reported pre-tax operating profit of $2 billion, or 46 cents per share, an improvement of $4 billion from a year ago. It marked Ford’s highest quarterly pre-tax operating profit in six years.

Ford North America posted first quarter pre-tax operating profit of more than $1.2 billion, a $1.9 billion improvement from first quarter 2009, as a result of higher volume and mix and favorable net pricing. Ford operations in South America, Europe and Asia Pacific Africa as well as Ford Credit also posted pre-tax operating profits in the first quarter and improved results over the same period in 2009.

“The Ford team around the world achieved another very solid quarter, and we are delivering profitable growth,” said Ford President and CEO Alan Mulally. “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.”

At the end of March, Ford entered into a definitive agreement to sell Volvo and related assets to Zhejiang Geely Holding Group for $1.8 billion, subject to customary purchase price adjustments. The sale is expected to close in the third quarter of 2010. As a result of the agreement to sell Volvo, all of Volvo’s 2010 results are being reported as special items and excluded from Ford’s operating results; 2009 data include Volvo.

Ford’s first quarter revenue was $28.1 billion, up $3.7 billion from the same period a year ago. If Volvo had been excluded from 2009, Automotive revenue would have increased by $7 billion, or more than 30 percent.

Ford finished the first quarter with $25.3 billion in Automotive gross cash, an increase of $400 million since year end. Automotive operating-related cash outflow was $100 million during the first quarter, as Automotive pre-tax operating profit was more than offset by changes in working capital and other timing differences, as well as a $300 million payment to Ford Credit reflecting up-front subvention payment. The company ended the first quarter with total Automotive debt of $34.3 billion, an increase of $700 million compared to year-end 2009.

On April 6, Ford paid down $3 billion of the drawn amount of its 2013 revolving credit facility. This payment has reduced Automotive gross cash and debt by $3 billion, which will be reflected on Ford’s second quarter 2010 balance sheet. The action did not affect Automotive liquidity, as the repaid amounts remain available for borrowing.

Special items were a favorable pre-tax amount of $125 million in the first quarter of 2010, or 7 cents per share. Ford recorded a $188 million gain related to held-for-sale adjustments for Volvo, which was offset partially by $63 million of global personnel reductions and dealer-related charges. If Volvo had continued to be reported as an ongoing operation, Ford would have reported a first quarter pre-tax operating profit of $49 million for Volvo.

“We are seeing the benefits of our One Ford plan around the world,” said Lewis Booth, Ford executive vice president and chief financial officer. “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.”

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[Polyal]

Come on GRWD...............

[Dreama]

why dont Ford try and sell the a Falcon overseas? much like holden sells their stuff to middle east? i think they would do well over there, especially the V8s and the XR6Turbo.

[ThePistonHead]

Originally Posted by Dreama

why dont Ford try and sell the a Falcon overseas? much like holden sells their stuff to middle east? i think they would do well over there, especially the V8s and the XR6Turbo.

Here we go....

Obviously it was looked at thoroughly during the planning stages of FG, and the decision was made not to make a LHD FG falcon.

Holden's revenue from selling vehicles overseas would be extremely limited I think you will find.

An SS commodore sent over to the US was far cheaper to buy over there directly compared to the RRP of an SS commodore in Australia.

[jpd80]

Originally Posted by Dreama

why dont Ford try and sell the a Falcon overseas? much like holden sells their stuff to middle east? i think they would do well over there, especially the V8s and the XR6Turbo.

Just like Holden did?
Their Middle East export and Pontiac G8 export programs curled up and died last year...

[FPV GTHO]

Holden and Toyota have successfully exported to the Middle East for years though. The barrier for Ford Aus there had always been the Crown Vic already being exported there and Ford not wishing to introduce competition from its own ranks.

[ltd]

No offence, but I'll put my faith in the fact that Alan Mulally knows what he's doing. Out of all the major American car companies he's the only one to pay off debt and turn a profit, without government handouts. I'd proffer that we all have a little faith.

[Wretched]

Now all they have to do is pay off all their debts ($35b or thereabouts).
Good work Ford anyway.

[ltd]

Originally Posted by Wretched

Now all they have to do is pay off all their debts ($35b or thereabouts).
Good work Ford anyway.

Perhaps then they could do a GM and use a secretive TARPS fund to pay it off then?

[Chopped]

The Toyota fiasco couldn't have been timed any better for Ford and GM.

Good news for Ford but hardly surprising considering their global model range ATM. The turbo 6 would be a revelation in the states (dreaming).

[charles_wif_xf]

Originally Posted by Chopped

The Toyota fiasco couldn't have been timed any better for Ford and GM.

A little too perfect if you ask me...

[mik]

Originally Posted by charles_wif_xf

A little too perfect if you ask me...

what are you eludeing too, industrial espionage?

[burnz]

Originally Posted by charles_wif_xf

A little too perfect if you ask me...

with obama in GM's corner???
thats possably why all the big 3 are posting profits..

[dannyhilton]

While Allan Mulally may have his critics, I am a major fan. I just hope that with all this talk of profits, they have a long hard look at GRWD, and not just for our sake, but the sake of RWD its self. If there is a company anywhere that can do it right, it's Ford, with the determination of the team in the US, not to mention the wealth of knowledge Ford Australia can offer, I have no doubt they could make it work. Could be a great time to begin focusing on other markets too, without loosing focus of the US of course.

But you also have to credit some of this success to the pre-Mulally powers at Ford too, as they set much of the ground work for Fords revival. It takes a man to admit he's wrong, and many of these guys knew they needed a fresh direction. I bet Bill Ford has dollar signs in his eyes now too, good on him!

[Luke Plaizier]

"Asia Pacific Africa" - posts $23M profit in the details - mainly because of China. Bloody annoying that Australia is just completely glossed over in these kinds of reports.


Lukeyson

[TUF_302]

Excellent news from Ford, at this rate they will be out of debt in a few more years easily, lets hope sales in aus can pick up by 37% to!

[jpd80]

Originally Posted by Luke Plaizier

"Asia Pacific Africa" - posts $23M profit in the details - mainly because of China. Bloody annoying that Australia is just completely glossed over in these kinds of reports.


Lukeyson

Be glad they were Luke, FoA and Holden both made big losses last year
and it's only the good graces of Chinese sales keeping Australia afloat...

[vztrt]

http://www.autoblog.com/2010/04/27/r...-profit-in-q1/

Report: Ford earns $2.1B profit in Q1

by Zach Bowman (RSS feed) on Apr 27th 2010 at 9:27AM

According to The Detroit News, Ford has officially announced its fourth straight profitable quarter in a row. The company managed to make $2.1 billion in profits over the first three months of 2010, thanks largely to a rapid increase in sales during the first part of the year. The company saw North American sales increase by around 39 percent compared to a year ago. At the same time, business is booming in China, where the Blue Oval managed to move around 84 percent more vehicles.

All of this is good news for stock holders, as the company was trading at $14.57 per share on Monday – its highest price in a year. As a result, Ford is planning on upping production in our neck of the woods. Dearborn would like to crank out 625,000 vehicles in the second quarter – a nine percent increase over the first three months of the year – though it isn't ready to say whether or not that means adding any more workers.

Despite the boom, Ford is careful to point out that the rest of the year probably won't look as sharp as the first quarter. Though the Fiesta is scheduled to hit the market soon, the threat of higher interest rates is looming on the horizon and Ford still has a heady $34.3 billion in debt to deal with. The company hasn't said what its plans are concerning paying off the rest of its debt load.

[Source: The Detroit News | Image: Bill Pugliano/Getty]

[Quicksand]

EPIC WIN for Ford!!!

Stand up and be proud folks.

[fordv8!]

go ford!

[FPV8U]

With the new Fiesta & 5.0L Mustang they are about to shift into overdrive, great job.

[vztrt]

http://www.theage.com.au/business/wo...0428-tqcm.html

Ford posts $US2.1b first-quarter profit on strong sales
April 28, 2010 - 7:17AM

Ford Motor Co said on Tuesday it earned $US2.1 billion ($A2.26 billion) in the first quarter, another sign the economy is improving as people spend more on big-ticket items like cars. The automaker expects to be solidly profitable this year, a year earlier than its previous guidance.

Ford said its net income per share was 50 cents during the quarter. That's an about-face from the same period last year when it lost $US1.4 billion, or 60 cents per share, at the height of the recession. It was Ford's highest quarterly profit in six years.

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," Ford CEO Alan Mulally said in a statement.

Revenue rose 15 per cent to $US28.1 billion.

Ford reported a one-time gain of $US188 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 $US63 million loss from personnel reductions and dealer payments.

Analysts polled by Thomson Reuters had expected revenue of $US30.5 billion and a profit of 31 cents per share. Analysts typically don't account for one-time items.

Ford's US sales climbed 37 per cent for the quarter and its market share rose nearly three percentage points. The company made $US1.2 billion in North America, which had been draining cash in prior years.

It also reported an 84 per cent sales increase in China.

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 per cent increase over first-quarter levels. The increase could mean additional hiring by Ford, but chief financial officer Lewis Booth said on Tuesday it's too early to say if the company will be adding workers.

Ford, the only Detroit-area automaker to shun government aid and stay out of bankruptcy protection, gained market share from crosstown rivals General Motors Co and Chrysler Group LLC. It also benefited from Toyota's safety recall problems.

The first-quarter profit was the fourth straight positive quarter for Ford, which has gradually cut costs and improved sales since the depths of the recession a year ago. Ford made $US2.7 billion last year.

AP

[Wally]

Finance side contributed pretty well at $815M

Asia Pacific Africa: For the first quarter, Ford Asia Pacific Africa’s pre-tax operating profit was $23 million, compared with a loss of $97 million a year ago. The improvement was more than explained by higher profits of unconsolidated China joint ventures driven by higher industry volumes , favorable net pricing, increases in industry volume outside of China and favorable exchange. First quarter revenue was $1.6 billion, up from $1.2 billion a year ago.

http://www.ford.com/about-ford/news-...2010-net-32473

[Iggypoppin']

Only thing I see wrong here is the first word in the thread title....
Good work ford!!

[jpd80]

Originally Posted by Iggypoppin'

Only thing I see wrong here is the first word in the thread title....
Good work ford!!

I put "SHOCK" there for drama, Dun...Dun...Daaaa...

The so called analysts have been underestimating Ford results for several years now.
When I read Bill Ford's statement before the release, I knew he could barely contain himself.....

[janddbone]

I can not believe they are still selling Volvo... One step to far I think...

[irish2]

Originally Posted by mr_br_johnstone

I can not believe they are still selling Volvo... One step to far I think...

Why? It was an investment that made them next to no return. The same as buying GM shares 3 years ago.

[janddbone]

Ford itself made no return either during that time... All the work is done, the whole range is where it needs to be and has most of the model sharing done to fit with the One Ford model.

It is the complete opposite to the rest of the PAG. It is right where it needs to be... I agreed with the the other company sales, but as I said before this one is, one too many...

[Iggypoppin']

It's all good mate was just joshing. We here at AFF all know ford was most likely to turn profit soonest. Good reading in this thread though, so thankyou.

[jpd80]

Originally Posted by Iggypoppin'

It's all good mate was just joshing. We here at AFF all know ford was most likely to turn profit soonest. Good reading in this thread though, so thankyou.

Glad to be the bearer of good news, that four profitable quarters in a row for Ford.

Lewis Booth was saying that $2B/quarter is not the norm but I'd be happy with a solid $4 billion for all of 2010, more debt paid down and strong sales growth.

These are the times for Ford's supporters to saver a resurgent Ford,
still more work to do but far from being on government welfare.....