Ford reports a nearly $1 billion profit (in Q3)

[Statistical]

Ford Motor reported a surprise profit for the third quarter Monday, helped by a bump in sales from the Cash for Clunkers program and problems at its U.S. rivals.

The only major U.S. automaker not to file for bankruptcy this year earned earned $997 million, or 29 cents a share, compared to a loss of $161 million, or 7 cents a share on that basis a year earlier.

Excluding special items, Ford reported a profit of $873 million, or 26 cents a share, in the period. Analysts had been forecasting a loss of 12 cents a share for the quarter on this basis. Ford said it was the first pre-tax operating profit since the start of 2008.

The company said cost cutting during the past year and an improved outlook for sales leads it to believe Ford will be "solidly profitable" in 2011, excluding special items. That's the most bullish outlook Ford has offered investors since it started losing money in 2005.

---------------------------------------

http://money.cnn.com/2009/11/02/news/companies/ford_results/?postversion=2009110207

All US automakers are not created equal and I never considered Ford to be in as bad of shape as GM & Chrysler. I was considering buying Ford at 1.50 as a speculation bet simply because the market unfairly crushed Ford's stock due to association with failures of GM & Chrysler. I wish I could say I pulled the trigger but I didn't.

I believe Ford can be profitable on annual basis in 2011. It is a much better run company at the top than either GM or Chrysler. IMHO Chrysler will likely re-fail again in next 5 years and nobody will save it a second time.

[mucifer]

1. so maybe they should hire more people

here in the USA

[TexasObserver]

2. Recommend

[skipos]

3. I like my Ford Fusion hybrid, purchased because of CFC. nt

[goclark]

7. I love my Ford Fusion 2009

Someone asked me why I would trade in my 2005 Mercedes for a Ford.

I laughed and told them ~ "A Mercedes doesn't define who I am.
I define who I am - I love my Fusion!"

My gas costs are way down, it drives like a dream, it's roomy, I have the Car Phone Feature, a 5 year maintenance agreement and lots more --

With all that I save about $250 per month at least.

I've heard that the Ford Fusion has been rated high and that's OK with me too.

[postulater]

4. That's a lot of money that could be spread among

the worker/owners in Detroit. It might help out the city.

Ford is employee owned isn't it?

:sarcasm:

What good is profit if it doesn't provide jobs.

I swear Ferengis are in charge of our country.

[Statistical]

5. You are aware Ford is in a lot of debt right?

1 billion to pay down debt, upgrade plants, or invest in R&D (for models people more likely to buy) would be a smart method of deploying capital.

Hopefully Ford has a long term plan for this Capital and expends it in a manner that increases brand value (increased selling price) and/or reduces operating costs (like finance charges on debt) over the long term.

[postulater]

16. I thought profit was what was left after you

paid down debt, upgraded plants and invested in rd.

But yes, that would be good too.

[Statistical]

19. Debt is long term.

Profit is Revenue - Expenses.

Debt isn't considered an expense.
interest on debt is an expense.

So Ford sold some cars and collected $30 billionish for those cars this qtr.

Now those cars have cost (materials, labor, electricity, suppliers, etc).

So after paying for all the costs Ford is left with ~$1B in profit.

That profit can no be used for long term capital expenditures such as building new plants or paying down debt.

[no limit]

17. That profit does provide jobs

I hate the fact that ford outsources. But even with that considered a lot of jobs are still in this country thanks to Ford. So when they make a profit in these economic times thats a very good thing.

[AllentownJake]

6. Ford is the smarter of the big 3

They will probably operate at a loss in all of 2010. If there is a recovery in 2011 in employment, Ford will be the first to return to solid footing.

[Selatius]

8. I think Ford would be run even better if it had a full-blown ESOP

If the company were owned by the employees, the employees, seeing how the reality is on the ground, would likely do just as well if not better at steering the company in the right direction than the people up top who answer to shareholders who may or may not even work or have ever worked in an auto plant or anything dealing with car companies.

[doc03]

15. ESOPs rarely work. We had a local steel company

that went ESOP, it lasted maybe 10 years. When the company was making money the employee owners took all the profits instead of putting them back in the business, they were bringing in $30,000 profit sharing checks for a few years. Then when a recession came and they started losing money they were forced to sell shares of the company to raise cash until eventually they lost control of the company. There were many that warned about that happening but nobody listened, the (owners) lived high on the hog for a while. A socialist business model can rarely survive within a Capitalist system.

[Selatius]

22. Well, I wouldn't apply the failure of one steel mill with an ESOP to all companies with ESOPs.

Food Giant where I live is an ESOP, and it's been around for decades. As in free markets, there are failures and successes. If employee ownership were a failure, then the Mondragon Cooperative Corporation would not exist, and that company has a workforce of roughly 70,000 people.

[doc03]

25. I am sure some ESOPs make it but the vast majority don't.

You have to have leadership, if you have a workforce that thinks they should get all the profits it won't work. Experts came in when that ESOP was formed and warned them that that was why most ESOPs fail. I remember when times were good they were buying $30000 pickups and boats every year for a while. If they would have put half of that money back in the business to modernize or have a rainy day fund they could have made it but greed won out. In order for GM and Chrysler to make it as an ESOP the UAW would have to face reality and realise the company needs to make a profit.

[Selatius]

26. Typically speaking, they have to elect a leadership to the board of directors like any other company

It's basically the same as with any other corporation with private shareholders. The only difference is that with companies like GM and Chrysler, they were never ESOPs to begin with, yet they failed because of shareholders who only cared about short-term profits instead of long-term viability, executive culture that avoids taking risks such as dumping a lot of money into R&D, and general incompetence all around. The arguments you show me tend to be arguments non-exclusive to ESOPs but to business in general. I fail to be convinced, but I respect your opinion.

[Shagbark Hickory]

9. It's amazing how much you can make with mass layoffs and goverment bailouts (incl Cash 4 Clunkers)nt

[Statistical]

10. If its so "easy" then why didn't GM post a $1 bill profit? Hell even Toyota didn't.

[Festivito]

13. More so, not being involved with a Bush-RepubliCON housing bubble.

One that so deteriorates our economy that we need cash for clunkers just to get people who used to buy cars all the time, to suddenly start buying again, and is still the cause of the jobs we have lost and continue to lose, although we are slowing that deterioration down now that the RepubliCONs are lessened.

[Shagbark Hickory]

14. There's nothing anyone can say or do to convince me Cash 4 Clunkers was in the best interests of USA

[Festivito]

21. May be you have a personably non-transportable idea of what is best for America. /nt

[Shagbark Hickory]

27. I support the idea of Cash 4 Cars but rather than rebates to buy a new car... the rebate should be

if you turned in your car and stopped using cars altogether.
There should be rewards to use transit and carpool.

NOT to buy SUVs.

I know that jobs are not created when Americans don't waste money they don't have but we can't keep doing that.

[MSchreader]

11. I guess the Ford workers were on to something

When the voted down the proposed concessions last week by three-to-one.

[Blue_Tires]

12. good for them

FoMoCo was a little ahead of the curve and was little smarter with their cash...As a result, there were better prepared to handle the recession...

[leeroysphitz]

18. Ford posts larger than expected profits. Consumer reports gives for fantastic ratings but...

Ford's stock drops slightly today. Meanwhile had they announced another round of layoffs this morning the stock value would have gone through the roof.

[Statistical]

20. Fords stock is also up 500% since lows and rally is likely over for some time.

[madokie]

23. Ford makes a good product is why

For the most part the ford's have been the best built vehicles you can buy here for as long as I've been buying cars. Don't believe me then next time you're on the road take note of the numbers of older ford vehicles and especially the hard worked pick'm up trucks in comparisons to any of the other brands, domestic or foreign.

As my dad would say, I'd rather have a picture of a ford as the keys to anything else.

[SoCalDem]

24. People who feared buying GM or Chrysler, bought Fords instead

no mystery there. Cars require longterm commitment from buyer and seller, so people probably thought they would be safer with Ford, since they were the most solvent US auto company