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Ford Earned $2.6B Profit in Second-Quarter 2010

Tim Howard — Sat, 24 Jul 2010 15:00:48 +0000

Still riding on the momentum from not accepting a government handout and from having more desirable vehicles, FoMoCo announced a second quarter 2010 net income of $2.6 billion, or 61 cents per share. That’s a $338 million improvement from the second quarter of 2009 and a $932 million improvement from the first quarter of 2010. More details can be found in Ford’s messy press release.

PRESS RELEASE:

FORD POSTS NET INCOME OF $2.6 BILLION IN SECOND QUARTER 2010; CONTINUES TO DELIVER PROFITABLE GROWTH+

* Ford reports second quarter net income of $2.6 billion, or 61 cents per share, a $338 million improvement from second quarter 2009. Pre-tax operating profit totaled $2.9 billion, or 68 cents per share, a $3.5 billion improvement from second quarter 2009 and a $932 million improvement from first quarter 2010++
* Ford Automotive operations posted a second quarter pre-tax operating profit of $2.1 billion, a $3.2 billion improvement from second quarter 2009 and $872 million improvement from first quarter 2010
* Each Automotive business operation reported a profit for the quarter and showed improvement compared with a year ago; Ford North America reported second quarter pre-tax operating profit of $1.9 billion, a
$2.8 billion improvement from second quarter 2009 and $645 million improvement from first quarter 2010
* Revenue for the quarter totaled $31.3 billion, up $4.5 billion from second quarter 2009; excluding Volvo revenue from 2009, the revenue increase was $7.4 billion, or over 30 percent++
* Ford ended the quarter with $21.9 billion of Automotive gross cash and total liquidity of $25.4 billion. Automotive operating-related cash flow was $2.6 billion positive
* Ford retired $7 billion of debt, lowering annualized interest costs by more than $470 million. Ford ended the quarter with $27.3 billion in Automotive debt
* Pre-tax operating profit in the first half equaled $5 billion, a $7.5 billion improvement over first half 2009++
* Ford Credit reported second quarter pre-tax operating profit of $888 million, a $242 million improvement from second quarter 2009 and a $60 million improvement from first quarter 2010
* Ford is on track to deliver solid profits in 2010 with positive Automotive operating-related cash flow, and continued improvement in 2011
* By the end of 2011, Ford expects to move from an Automotive net debt position to a net cash position

DEARBORN, Mich., July 23, 2010 – Ford Motor Company [NYSE: F] today reported second quarter 2010 net income of $2.6 billion, or 61 cents per share, a $338 million improvement from second quarter 2009, as each of its major business operations around the world recorded improved profits.

Excluding special items, Ford reported a pre-tax operating profit of $2.9 billion, or 68 cents per share, an improvement of $3.5 billion from a year ago and a $932 million improvement from the prior quarter, and the company’s best quarterly performance since the first quarter of 2004. Ford has posted an Automotive and total company pre-tax operating profit for four consecutive quarters.

Ford North America posted a second quarter pre-tax operating profit of $1.9 billion, a $2.8 billion improvement from second quarter 2009.

Ford’s second quarter revenue was $31.3 billion, up $4.5 billion from the same period a year ago. Excluding Volvo revenue from 2009, Ford’s revenue in the second quarter was up $7.4 billion compared to 2009, or over 30 percent.

Automotive operating-related cash flow was positive $2.6 billion during the second quarter, primarily reflecting pre-tax operating profits and favorable changes in working capital.

Ford finished the second quarter with $21.9 billion in Automotive gross cash, a decrease of $3.4 billion since the first quarter, as a result of substantial debt reduction actions. Including available credit lines, total Automotive liquidity was $25.4 billion at the end of the quarter.

The company ended the second quarter with Automotive debt of $27.3 billion, down $7 billion in the quarter. The reduction included a $3.8 billion payment by Ford to the UAW Retiree Medical Benefits Trust, and a $3 billion repayment of Ford’s revolving credit facility. The debt reduction will save Ford more than $470 million in annualized interest savings.

Special items were an unfavorable pre-tax amount of $95 million in the second quarter. Ford recorded $229 million of personnel and dealer-related charges related primarily to the plan to discontinue production of the Mercury brand, which was offset partially by $94 million of favorable held-for-sale adjustments for Volvo and a $40 million gain related to the full pre-payment of Ford’s VEBA Note A debt obligation at a discount.

The first half cost associated with Mercury discontinuation and total U.S. dealer reductions is expected to be somewhat less than half of the total expected special item charges for these actions during the 2010 to 2011 period.

If Volvo had continued to be reported as an ongoing operation, Ford would have reported a second quarter pre-tax operating profit of $53 million for Volvo, representing a $290 million improvement compared to the second quarter of 2009.

“Our fundamental business is strong and we continue to gain momentum around the world,” said Lewis Booth, Ford executive vice president and chief financial officer. “Profits improved across our global business operations in the second quarter and we made continued progress in paying down our debt and strengthening our balance sheet.”

GM Earns First Quarterly Profits in 3 Years

Kwame Owusu — Tue, 18 May 2010 15:00:44 +0000

General Motors reported today that it was profitable in the first quarter of 2010, recording $31.5 billion in revenue and $1.2 billion in operating income. The portion of income belonging to common stockholders was $0.9 billion, resulting in earnings per share on a diluted basis of $1.66.

A year ago, GM lost nearly $6 billion on revenue of only $22.4 billion, as sales plunged and the company hurdled toward bankruptcy. The profit is the Detroit automaker’s first since 2007 and the first since it emergence from bankruptcy last year.

The company has greatly restructured its operations, eliminating four of its brands and introducing more attractive models to its lineup. More details on the announcement can be found in the press release below.

PRESS RELEASE:

GM Reports First Quarter 2010 Results
GM achieves net income of $0.9 billion and EPS of $1.66

2010-05-17

DETROIT, Mich. – General Motors Company today announced its first quarter 2010 results, marked by revenue of $31.5 billion and operating income of $1.2 billion. Net income attributable to common stockholders was $0.9 billion, resulting in earnings per share on a diluted basis of $1.66.

GM’s first quarter adjusted earnings before interest and tax (EBIT) was $1.7 billion, after adjusting for the favorable impact of the sale of the Saab brand.

GM North America had EBIT in the first quarter 2010 of $1.2 billion, up from a loss of $3.4 billion in the fourth quarter 2009. GM Europe had a loss before interest and taxes of $0.5 billion; an improvement of $0.3 billion from the fourth quarter. GM International Operations posted EBIT of $1.2 billion, up $0.5 billion from the fourth quarter.

Cash flow from operating activities was $1.7 billion and after adjusting for capital expenditures of $0.7 billion, free cash flow was $1.0 billion. GM ended the first quarter with $35.7 billion in cash and marketable securities, including funds in escrow.

“We’re pleased with our first quarter performance, in particular achieving profitability,” said Chris Liddell, vice chairman and chief financial officer. “In North America we are adding production to keep up with strong demand for new products in our four brands. We’re also steadily growing in emerging markets, keeping our costs under control, generating positive cash flow and maintaining a strong balance sheet. These are all important steps as we lay the foundation for a successful GM.”

Ford Earns $2.1 Billion Profit in Q1 2010

Kwame Owusu — Tue, 27 Apr 2010 15:00:43 +0000

Ford Motor Co. reported a $2.1 billion profit for the first quarter of 2010 and has raised its forecast for the full year. The is the forth quarter in row — since the second quarter of 2009 — that the company has reported a profit. It has boosted its second-quarter North America production by 30,000 vehicles. The announcement is in contrast to the $1.4 billion loss the company realized in the same period last year.

“We remain cautiously optimistic about positive signs emerging in the global economy while knowing the recovery is fragile and the global auto industry continues to deal with excess capacity,” Ford Chief Executive Alan Mulally said in a statement.

Riding on the wave of Toyota’s recall woes and on a new poll that found that more Americans believe the U.S. builds better cars than Asian automakers, Ford now expects to produce 625,000 new cars and trucks during the second quarter, a 39% increase over the same period last year. The increase reflects strong consumer demand and the need to replenish dealer lots.

In Europe, the American automaker’s sales were helped by scrappage incentives offered in a number of countries. However, the European car market is expected to begin declining starting this month.

Ford finished the first quarter with $25.3 billion in automotive gross cash, an increase of $400 million since the end of 2009. It’s automotive debt was $34.3 billion.

Source: The Detroit News

Hyundai Posts Record Q4 Profits

Tim Howard — Fri, 29 Jan 2010 07:30:50 +0000

Hyundai Motor posted a record operating profit for its fourth quarter. Its small cars have proven to be popular with recession-weary buyers and, with Toyota facing an image crisis, the South Korean automaker looks to maintain the momentum it has over its rivals for the year.

“Hyundai still has a lot of momentum, particularly compared with Toyota,” said Mitsuru Kurokawa, analyst at IHS Global Insight in Tokyo. “They’ve got a lot going for them: a broad compact car line-up, attractive prices for the quality they offer and clever marketing.”

Hyundai’s operating profit for the October-December was of 837.2 billion won ($728.4 million USD), up 44% from a year ago. Net profit more than doubled to 945.5 billion won ($822.7 million USD), well above analysts’ forecasts. Overall sales were up 9.3 percent to 9.65 trillion won ($8.40 billion USD).

Similar results are expected for its sister brand Kia.

Source: Reauters

Ford Earned $2.7 Billion Profits in 2009

Tim Howard — Thu, 28 Jan 2010 21:26:41 +0000

In the heap of Toyota’s recalls, Ford announced today that it earned a $2.7 billion profit for 2009, its first profit in four years. The announcement is made more significant because it came in one of the worst years in the history of the automotive industry.

“While we still face significant business environment challenges ahead, 2009 was a pivotal year for Ford and the strongest proof yet that our One Ford plan is working and that we are forging a path toward profitable growth by working together as one team, leveraging our global scale,” Ford President and CEO Alan Mulally said in a statement.

Not only is this news a welcomed surprise but Ford expects to keep the momentum up, predicting similar results for 2010. The company will raise its first quarter production levels in North America by 20,000 units, from 550,000 to 570,000. This will help it meet rising demand for its cars and trucks and keep inventory inventory levels at industry standards.

It’s often difficult to gauge from an annual earnings figure just how much cash a company generated for any given year (you’ll have to read through their financial statements for the details), but Ford said it finished the year with $25.5 billion in automotive gross cash and $34.3 billion in automotive debt.

PRESS RELEASE:

FORD POSTS FULL YEAR PROFIT FOR 2009; FOURTH QUARTER 2009 NET INCOME OF $868 MILLION; PLANS TO BE PROFITABLE IN 2010+

* Full year net income of $2.7 billion, or 86 cents per share, a $17.5 billion improvement from a year ago. Pre-tax operating profits of $454 million, a $7.3 billion improvement from a year ago++

* Fourth quarter net income of $868 million, or 25 cents per share, a $6.8 billion improvement from a year ago. Pre-tax operating profits of $1.8 billion, a $5.5 billion improvement from a year ago++

* Ford North America fourth quarter pre-tax operating profits of $707 million, a $2.6 billion improvement from a year ago++

* Reduced Automotive structural costs by $500 million compared with the fourth quarter 2008, bringing the total 2009 reduction to $5.1 billion, exceeding the target of about $4 billion

* Strong products drove full year market share gains in North America, South America and Europe as well as continued improvements in transaction prices and margins

* Ended the year with $25.5 billion of Automotive gross cash and $34.3 billion in Automotive debt

* Achieved positive Automotive operating-related cash flow of $3.1 billion for the fourth quarter. Full year Automotive operating-related cash outflow was $300 million, a $19.2 billion improvement over 2008

* Ford Credit fourth quarter pre-tax operating profits of $696 million, a $1.1 billion improvement from a year ago

* For full year 2010, Ford plans to be profitable on a pre-tax basis excluding special items, for North America, total Automotive and total company, with positive Automotive operating-related cash flow, based on its assumptions

Ford Bucks the Trend: July 2009 Sales up 2%

Kwame Owusu — Tue, 04 Aug 2009 19:46:00 +0000

Ford Motor Co. – including Ford, Lincoln, Mercury and Volvo brands – is quickly turning itself into a success story, announcing good news after good news ever since both Chrysler and GM filed for (and emerged from) bankruptcy. The good news continue – FoMoCo announced a sales increase of 2.4 percent for July 2009 over the same period last year. “The U.S. government’s Car Allowance Rebate System (“Cash for Clunkers”) enabled Ford to post the first sales increase of any major manufacturer in 2009,” said the company in its press release.

By “first sales increase of any major manufacturer“, we’re betting that Ford is talking about GM, Toyota, Honda, Chrysler and Nissan which all posted sales drops for the month. But Subaru, Hyundai and Kia all saw higher increases than FoMoCo.

The Ford brand posted a sales increase of 3 percent mainly due to great sales by the fuel-efficient Fusion and Milan (up 66 and 60 percent), Escape and Mariner (up 94 and 71 percent), Focus (up 44 percent) and Ranger up 65 percent.

On the downside, the much-vaunted Taurus saw it sales drop by a disappointing 57 percent compared to last July’s sales of the outgoing model. The Flex is also down, selling only 3,631 units, breaking the model’s steady growth since its debut. The Ford Mustang, which has enjoyed steady sales, was down 37.6 percent to 6,686 units. Ford Edge sales were down by a small 7.7 percent. The perennial top-seller the, F-Series truck, was down 19 percent.

On the luxury front, Lincoln sales were down 24 percent to 6,672, compared to 8,819 units sold in July 2008. The only model that saw a sales increase was the Town Car, which was up 95 percent to 1,841. The MKX was the second highest sales, selling 1,642 units (down 18 percent). The Mercury brand saw its sales increase by 7 percent thanks to the strong sales of the Milan and Mariner. But the Sable (-84.8 percent to 345 units) and Mountaineer (-30 percent to 403 units) were dark spots.

Volvo recorded the highest increase, with sales rising by 26 percent. The S60 is up up 257 percent to 1,461 units.The V50 and C70 were also bight sports with sales increasing by 50 percent) and 27 percent, respectively are hanging. The XC90, down 45 percent, is the biggest loser.

Source: Ford(PDF)

Chrysler July 2009 Sales Drop 9%

Kwame Owusu — Tue, 04 Aug 2009 18:51:00 +0000

Out of the Big 3, Chrysler Group LLC – Jeep, Dodge and Chrysler – seems to have suffered the most performance-wise since the financial crisis. The American automaker reported a sales drop of 9 percent for July 2009. A sales drop is never good, but the group was one of the best performers for the month, posting smaller drops than GM, Toyota and Honda. A 9 percent sales drop is significantly better than the huge double-digit drops its reported in previous months.

All three brands benefited for the government’s Cash for Clunkers program. Chrysler’s sales dropped by -21 percent for the month compared to the same period last year (16,549 vehicles compared to 20,858 units). The biggest culprits for the big drop were the abysmal Sebring, down 27 percent; the 300C, down 40 percent; and the Town And Country, down 15 percent to 6,837 vehicles. The PT Cruiser was a bright spot for Chrysler, with sales rising +24 percent to 4,092 units.

Dodge benefited the most for the CARS program. Total sales dropped by a mere 8 percent. The Caliber outsold every single Chrysler nameplate. The Avenger, with 5,616 units greatly outsold the Sebring, its platform mate. The Charger, with 2,663 vehicles sold, beat the 300, while the Caravan (8,405 units) beat T&C. The Journey remained in the game with 4,165 units sold.

Jeep was the best performer of the three brands, with sales dropping by a minuscule 2 percent. Jeep Patriot sales increased by a whopping 134 percent to 8,084 units, which was enough to compensate for disastrous 81 percent drop of the Commander (552 units sold). The compass also saw a healthy growth of 95 percent to 2,736 units. The Wrangler was not as lucky, with sales falling 25 percent.

Source: Chrysler

Honda July 2009 Sales Down 17%

Kwame Owusu — Tue, 04 Aug 2009 18:09:00 +0000

Honda had pristine sales record before the global recession, but the automaker announced a U.S. sales drop of 17 percent this month compared to July 2008. It sold a total of 114,690 vehicles as opposed to the 138,744 units sold July last year.

Honda Civic sales were up by 3.1 percent to 30,037, aided by the government’s Cash for Clunker program. Accord is down 28 percent to 29,974. The Honda’s CR-V continues to sell well, rising 10 percent to 19,151. These three models were the only bright spots in Honda’s lineup. Things get bad (Pilot: 6,340, -15.3 percent) to worse (Odyssey: 6,785, -48 percent). Sales of its latest hybrid, the Honda Insight, have been dropping steadily since its lanche several months ago.

On its luxury front, Acura saw its sales fall by 32%. Sales for the TL dropped by a mere 16.5%, while TSX sales fell by over 35 percent to just 2,232 units. The RL sold only 131 units. MDX sale fell 29% to 2,471, while RDX managed a measly 519 sales.

GM July 2009 Sales Down 19%

Kwame Owusu — Tue, 04 Aug 2009 12:50:00 +0000

General motors reported a sales drop of 19 percent for the month of July compared to the same period last year. But as bad as it looks, a 19% decline looks fairly good compared to the 35 percent decline GM realized for the first half of 2009.

Chevrolet was GM’s top performing brand (mainly because of the brisk launch of its 2010 Equinox) with a sale drop of only -9 percent. It sold 124,948 vehicles compared to the 137,823 vehicles sold in July 2008. The soon-to-be defunct Pontiac brand saw its sales drop by 13 percent, selling 22,024 vehicles compared to 25,373 last year. GMC sales fell by 20 percent, with 21,860 vehicles sold compared to 27,447 sold last July.

As for GM’s luxury divisions, Buick sales fell by -29 percent, with the Buick Enclave sales still strong. Cadillac was less lucky with a sales drop of -53 percent. It was a tough month for the brand’s latest CTS sports sedan.

Despite July’s poor showing, General Motors is optimistic:

“Our performance is being driven by the outstanding products in our core Chevrolet, GMC, Cadillac and Buick brands. While still challenging, the market is firming and GM sales are still tracking ahead of what we projected in our reinvention plan. In July we are projecting our retail market share to exceed our year-ago performance. From great new products, like our Cadillac SRX and CTS Sport Wagon, Chevrolet Camaro and Equinox, to attractive financing and new leasing opportunities and to the Cash-for-Clunkers program that helps reduce the cost to buy a new vehicle — customers have unprecedented opportunities to get into a new GM car or truck. We anticipate an additional sales lift in August if Congress approves more funding for the wildly-popular Cash-For-Clunkers economic recovery program.”

Source: GM

Toyota July 2009 Sales Down 11.4%

Kwame Owusu — Tue, 04 Aug 2009 12:13:00 +0000

Despite the government’s CARS Rebate program, the world’s number one automaker was unable to pull itself out of the gutter. Toyota’s July U.S. sales fell by 11.4 percent when compared to the same period last year. It sold a total of 156,355 cars and trucks for the month, compared to 175,242 in July 2008.

The Toyota Yaris and Corolla saw their sales drop by 36 percent and 14 percent, respectively, and did not receive much sales boost from the government’s cash for clunkers program. Camry sales were off by about 20 percent, while the new Venza is off to a slow start, selling 5,780 units. The Avalon is down to just under 2,000 units.

The Toyota RAV-4 was up 32.5 percent to 15,912 units. But the Highlander saw the biggest sales increase of 39 percent over the same period last year, selling 9,400 units compare. The Sienna minivan dropped 19%. Every other model was off by between 26 percent (Land Cruiser) and 75 percent (FJ Cruiser).

Lexus sales fell by 16.5 percent, selling 18,517 vehicles for the month versus 22,182 in July 2008. The ES and IS saw their sales drop by 21 and 15 percent, respectively. LS and GS sold a minuscule 874 and 551 units each. RX is up ten percent to 7,811 units, but GX (587) and LX (215) barely register on the sales chart.

Despite the decline, Toyota Division’s general manager, Bob Carter, said that the automaker sales increase incrementally by roughly 30,000 to 32,000 because of the Cash for clunkers program. He said that five models generated 80 percent of the sales as a result of the program, including the Camry, Corolla, Prius, RAV 4 and Tacoma. Prius sales increased by 30 percent to 19,173 units.

“In our view CARS has really served as a very tangible stimulus package,” Carter said. “This really confirms for us that there’s an appetite out there for fuel-efficient vehicles.”