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Business
See other Business Articles Title: Ford Motor Company Exceeds Expectations, Posts $2.1 Billion First Quarter Profit
Source:
Examiner
URL Source: http://www.examiner.com/x-6173-Ford ... 1-billion-first-quarter-profit
Published: Apr 27, 2010
Author: Examiner
Post Date: 2010-04-27 10:56:44 by Brian S
Keywords: None
Views: 871
Comments: 1
Ford Motor Company reported first quarter 2010 net income of $2.1 billion, or 50 cents per share, a $3.5 billion improvement from first quarter 2009. Analysts over the weekend had expected Ford to post a first quarter profit of approximately $1 billion.
According to Ford, the improvement is due to strong sales of new products, improvements in Ford’s global Automotive operations, and higher profits at Ford Credit. "Now if they would just resume dividend payments, we'd know for sure Ford was really back," said one Ford stockholder.
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. Less than one year ago, Ford reported a first quarter loss of nearly $1.4 billion.
“The Ford team around the world achieved another very solid quarter, and we are delivering profitable growth,” said Ford President and CEO Alan Mulally in a press release distributed Tuesday morning.
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.
Commentary
Employees, retirees and stockholders should be encouraged by what they are witnessing. Senior management, however, should be humble, as Ford’s difficulties over the past dozen years have been largely self-imposed. To be sure, the economic climate is poor and gasoline prices have been volatile. But a neglected product portfolio, lapses in quality and poor strategic decision making - such as buying Jaguar, Land Rover, Volvo and Aston Martin and the continued dependence on SUV and pickup sales - cost the Company billions and diverted management’s attention away from the core business: building vehicles people want to buy.
What a difference a year makes
Read more about Ford Motor Company's dramatic turnaround - accomplished without any federal loans - in past Examiner articles:
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