Ford continues to defy the odds. In a surprising announcement, the Dearborn automaker revealed posting a $2.3 billion net profit in the second quarter of 2009. But it’s not all good news – Ford still reported $424 million in overall operating losses for the quarter. The $2.3 billion profit comes courtesy of the company’s restructuring efforts. Ford reduced its debt load by $10 billion as part of a debt-for-equity exchange, saving $500 million in interest expenses.
Analysts were expecting a 53 cent per share loss from Ford, but the automaker surpassed these expectations, posting a loss of only 21 cents per share. Ford also improved its cash situation, burning through only $300 million in cash compared to the $3.7 billion cash burned in the first quarter. The company now has $21 billion in cash on hand.
Ford said that it was on track to break-even in 2011, sending its shares up more than 9 percent. CEO Alan Mulally is optimistic about his company’s future prospects.
“While the business environment remained extremely challenging around the world, we made significant progress on our transformation plan,” said Mulally. “Our underlying business is growing progressively stronger as we introduce great new products that customers want and value, while continuing to aggressively restructure our business and strengthen our balance sheet.”
“Ford expects third quarter 2009 production to be up, compared with 2008 and second quarter 2009 production” Ford said in a statement. “This increase is largely due to tightly controlled inventories and higher market demand for our products.”