Ford Posts Quarterly Profit

Profit was on one-time gains

Ford Motor Co. announced on July 23 a quarterly profit on one-time gains, as it narrowed its operating loss to $424 million in results better than market expectations.

The second-quarter net profit amounted to of $2.26 billion resulting from special one-time gains of $2.8 billion linked to debt reductions.

That compared with a $8.7 billion loss in the same period a year ago.

Ford's second-quarter revenue was a better-than-expected $27.2 billion, down $11 billion from the same period a year ago as the automaker pursued a massive restructuring that included selling some of its operations.

"While the business environment remained extremely challenging around the world, we made significant progress on our transformation plan," said Ford CEO Alan 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 said it "remains on track to achieve or exceed all of its 2009 financial targets and most of its operational metrics," and that it expects full-year market share to improve compared to 2008 in the U.S. and Europe.

The only one of the Big Three Detroit automakers to survive without a government bailout, has nonetheless been struggling with the collapse in auto sales in the U.S. and other markers, losing $14.5 billion in 2008.

The automaker has already shed tens of thousands of jobs and closed plants in an effort to cut costs, and sold off the bulk of its luxury European marks, including Jaguar and Aston Martin. It is considering the sale of Swedish brand Volvo and hopes to cut automotive structural costs by four billion dollars in 2009.

Ford said its expects 2009 U.S. industry sales will be between 10.5 million and 11 million units, down sharply from last year but reflecting an increase from a horrific start to the year.

Copyright Agence France-Presse, 2009

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