Ford Motor Company Announces First Profit Since 2005

By Richard West on January 30, 2010, 8:18 am

Ford Motor Company’s stock rose on the first day after announcing its first quarterly profit since 2005. Leaders of the company said they expect Ford to be on solid profit grounds by 2011. This follows the company’s losses of $30 billion from 2006 to last year. The company is the only U.S. automaker that did not file for bankruptcy. The company remained confident it could turn the company around – and, it did.

Major Profits For Ford Motor Company Even In A Declining Economy

Ford Motor Company reported earnings of $2.7 billion for 2009. The company predicts it will operate profitably during 2010 despite the slow recovery of the U.S. auto sales. Ford attributes the profit is stemming from cost-cutting gains from debt reduction efforts. Good results from the financing arm along with stronger pricing were two of the other variables.

Ford’s Chief Financial Officer Lewis Booth warned that the company still must take steps to address the uncompetitive balance sheet. He said that they will continue to watch for additional signs the United States economy will continue to recover. Ford’s President and CEO Alan Mulally attritubes the profit to a solid product lineup. He said that the product lineup is what is leading the way in all markets. He stated, “While we still face a challenging road ahead, our One Ford transformation plan is working and our underlying business continues to grow stronger. The 2009 sales for the big automakers was the worst in nearly 30 years. This was partly due to the credit freeze, along with the economy and consumer confidence faltering while unemployment continued to rise. All of the major auto manufacturers said they started 2010 with momentum.

 

2009 Big Sales For Ford Fusion And The Ford Escape

The Ford Motor Company said that strong sales resulted from the strong demand for the mid-size cars such as the Ford Fusion. The sales for the Fusion rose 83 percent. Another strong auto was the Ford Escape crossover with sales rising 75 percent. Ford vice president for U.S. marketing sales and service explained, “It was a challenging and very volatile year. We had to deal with a near depression economy, there were bankruptcies, bailouts, discontinued brands, distressed pricing, a government stimulus program…that resulted in huge shifts in demand from one month to the next. Through it all Ford drove ahead of all of its competitors.” Make certain that your new car is fully insured.

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