SHOCK - Ford posts $2.1 Billion Profit For First Quarter

[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.....

[phillyc]

Originally Posted by jpd80

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.....

Interesting that he is only looking at $4B USD for the calender year. Big investment in new products? Or just playing conservative by underpromising and overdelivering?! Terrific result nonetheless.

[jpd80]

Originally Posted by phillyc

Interesting that he is only looking at $4B USD for the calender year. Big investment in new products? Or just playing conservative by underpromising and overdelivering?! Terrific result nonetheless.

Yes, big investment costs coming but also some headwind on commodities, hot rolled steel
has gone from $500/ton to $650/ton in the US, that will add significantly to car build costs.

Also the second half of the year will be filled with a lot of new Focus and Fiesta sales but
because these vehicles have lower retail prices, the total revenue is expected to be down.
I think the latter is a bit pessimistic, I think Focus and Fiesta will add to Ford's increasing sales,
not detract but more like cream on top....

Edit,
The $4 Billion estimate was mine, not Lewis Booth but I suspect that's what Ford are hinting at....

[Polyal]

What the need to do now is capitalize on the products that are in NA.

Make them available in RHD, have Mustangs going all around the world; I was going to say F trucks but we will have T6 so that should do.

[zebby]

Its not all good news. They still have a mighty big hole to get themselves out of.

http://www.leftlanenews.com/did-ford...d-by-debt.html

[charles_wif_xf]

Originally Posted by vztrt

I didn't see GM or Chrysler posting 4 quarters in a row of profits.

That is very true, and FoMoCo are to be commended for these results. To me at least, Toyota's issues seemed a little too fortuitous. Even so, GM and Chrysler should be shot (in a manner of speaking) for not taking advantage of the massive opportunity presented.

[jpd80]

Originally Posted by zebby

Its not all good news. They still have a mighty big hole to get themselves out of.

http://www.leftlanenews.com/did-ford...d-by-debt.html

None of that debt has stopped Ford rolling out new products or paying debts,
making profits for the last four quarters in a row in the worst economic time
of the past 75 years.

[vztrt]

Blue Oval cruises into the black

http://www.goauto.com.au/mellor/mell...257714001D589B

‘One Ford’ plan is working, say FoMoCo chiefs as they announce $2.3b Q1 profit

29 April 2010

By RON HAMMERTON

FORD Motor Co has notched a fourth consecutive quarter in the black – its best winning streak for five years – and its highest quarterly profit in six years.

The profit of $US2.1 billion ($A2.3b) represents a $US3.5 billion ($A3.8b) turnaround in first-quarter income over last year's $US1.4 billion loss for the first three months of last year.

Ford CEO and architect of its financial stability Alan Mulally declared the ‘One Ford’ plan was delivering “profitable growth”, and he predicted solid profits for 2010.

“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,” he said.

Mr Mulally cautioned that the company was unlikely to maintain the $2 billion-a-quarter profit pace for the remainder of this year, mainly due to launch costs for a number of new models.

In the US, Ford is gearing up for the debut of the 2011 Focus, which will be built simultaneously in Detroit and Europe and sold from May next year, along with Europe’s hot-selling Fiesta light car.

Ford is expecting big things from both of these models, which could well send the company’s profits soaring in 2011 and beyond if all goes to plan.

However, Ford faces higher commodity prices and stronger opposition from a stung Toyota recovering from its safety recall woes and an increasingly robust General Motors.

Ford’s improved balance sheet reflected a strong response for Ford cars in the US, where it enjoyed its largest quarterly market share gain in more than 30 years on the back of a big public appetite for its popular Fusion, Taurus, Focus and F150 models.

The only one of the Detroit ‘Big Three’ to survive the global crisis without falling on its knees to the US government for help, Ford now has a 16.6 per cent market share – up 2.7 percentage points on last year – putting it in second place behind GM and ahead of Toyota.

Ford’s first-quarter revenue was $US28.1 billion ($A30.4b), up $US3.7 billion on the same period a year ago.

The company also finished the quarter with $US25.3 billion in cash, but still saddled with a $US34.3 billion debt. The latter is an increase of $US700 million.

Ford Credit – once Ford’s dependable cash cow that fell on hard times in the GFC – also surged back into profit, recording a $US828 million pre-tax profit in the first quarter, compared with a $36 million loss in the same period last year.

Ford Asia Pacific Africa – which includes Ford Australia – also turned it around, posting a modest $US23 million profit after a $US97 million loss last year, on revenue that surged from $US1.2 billion in the first quarter of 2009 to $US1.6 billion this year.

[phillyc]

Originally Posted by jpd80

None of that debt has stopped Ford rolling out new products or paying debts,
making profits for the last four quarters in a row in the worst economic time
of the past 75 years.

Another 1-2 years of good profits and some more share issuing and the debt will be gone. Note that having some debt / leverage can actually be a good thing.

When you have inventory that is depleted faster than it can be restored, that increases the 'apparent' profit too. It will be interesting to see the next few quarters. They might make as little as $0.5B and as much as $2.5B USD per quarter.

Two large factors on the profit will be
* How US Toyota rebound and how many incentives they offer which have been phenomenal lately.
* The Euro market and how it responds to the dropping of new vehicle subsidies. BTW Ford has recently taken market leadership!

[jpd80]

I'm fully expecting Ford to have some big payments in the US for new car programs there this year
but by way of compensation they get a global Focus and Fiesta that both make money as well as a
new Explorer, a freshened Edge a, new Mustang and engines ... the list goes on,
new F150 with 6.2 Raptor, 5.0 V8 and V6 ecoboost coming soon.

GM has nothing in the cupboard comparing to that showroom, they are betting big on Volt bring
a knockout winner but gee, a subsidised $40,000 long range hybrid is a big ask in the USA...

[Ohio XB]

As mentioned in the last quoted article, Ford expects profits to be lower than this quarter for the rest of the year due to the number of new vehicle launches this year, and the launch costs. However, these launches will lead to more profit next year.

Also, now that the US market is begining to hum along, with more momentum coming, Ford is investing in emerging markets such as China and South America as the US market is mature and only market share can be gained, instead of growing a new market like in China and S.A. I believe these investments will also begin to pay off in profit margins starting next year and continuing from there. Ford is also expanding in India.

I believe the next several years for Ford look stellar, depending on how high commodities costs go.

Mulally = The Man.


Steve

[jpd80]

Originally Posted by Ohio XB

As mentioned in the last quoted article, Ford expects profits to be lower than this quarter for the rest of the year due to the number of new vehicle launches this year, and the launch costs. However, these launches will lead to more profit next year.

Also, now that the US market is begining to hum along, with more momentum coming, Ford is investing in emerging markets such as China and South America as the US market is mature and only market share can be gained, instead of growing a new market like in China and S.A. I believe these investments will also begin to pay off in profit margins starting next year and continuing from there. Ford is also expanding in India.

I believe the next several years for Ford look stellar, depending on how high commodities costs go.

Mulally = The Man.


Steve

Key products for Ford NA going forward are about to be refreshed or see completely mew versions introduced, with all fo GM's debt reduction, the amount they are rolling out compared to Ford is miniscule.

People forget thet Ford IS paying down debt AND delivering on new products.


I don't see GM's IPO being that successful later this year, still the same chumps running the company....