Ford Records $2.3 Billion Profit for the Second Quarter 2009

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Ford Logo CEO Alan Mulally - Auto Tribute
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.”

  • Kim

    The profit is a vast improvement from the record $8.7 1000000000 loss that Ford reported in the same quarter last year. Ford said its auto business destroyed through $1 1000000000 change in the ordinal quarter compared with $3.7 1000000000 in the prototypal quarter. It said it expects change flow to improve over the remainder of 2009.

  • bookmark

    At least, there is one USA car manufacturer that can survive the bad economy. Thanks for the news.

  • CarsLover

    2 all: I fully agree with all of you.

    To my mind, Ford company will be the leader in the auto industry after releasing Ford Focus 3.

  • Anonymous

    It's good news, nut the company still didn't make any money. I'm wishing it the best.

  • Tedd

    I think if any company could survive this recession in the automotive industry, that will be Ford. Its amazing to posting a loss of only 21 cents per share

  • Personalized Ornaments

    God bless Ford for not taking any of that stimulas money from the Government. I hope they come out on top when the dust settles.