  Johnlodge Member Username: Johnlodge Post Number: 1320 Registered: 10-2003 |
http://money.cnn.com/news/news feeds/articles/djf500/20070726 1040DOWJONESDJONLINE000941_FOR TUNE5.htm "DETROIT -(Dow Jones)- Ford Motor Co. (F) surprised Wall Street Thursday in announcing its first profit in two years, as the auto maker's bottom line benefited from higher-than-expected global revenue and a narrowing of North American losses, thanks to accelerated cost-cutting. The Dearborn, Mich., company also said it is "exploring in greater detail" the potential sale of the combined Jaguar and Land Rover business with parties who have expressed interest. Ford said it has also launched a strategic review on the future of its Volvo unit, confirming reports in recent weeks that the Swedish luxury brand could be on the auction block. The auto maker posted a second-quarter net profit of $750 million, or 31 cents a share, compared with a loss of $317 million, or 17 cents a share, a year earlier. Operating profit was $258 million, or 13 cents a share, as revenue from automotive operations rose 6.1% to $40.1 billion. The results far outpaced expectations of analysts surveyed by Thomson Financial, who had estimated on average that Ford would post an operating loss of 35 cents a share on automotive revenue of $37.54 billion. Ford shares were up 3% at $8.21 in early trading on the New York Stock Exchange, bucking the broader selloff on Wall Street." | ||
Thejesus Member Username: Thejesus Post Number: 1690 Registered: 06-2006 |
nice... I just read an article last week that said they didn't expect to be profitable again until 2009... Horray for Alan Mulally and his enormous salary! | ||
Ray1936 Member Username: Ray1936 Post Number: 1697 Registered: 01-2005 |
It's all because of the '08 Escape I bought last month. | ||
Thejesus Member Username: Thejesus Post Number: 1692 Registered: 06-2006 |
^except they're still losing money in North America... | ||
Johnlodge Member Username: Johnlodge Post Number: 1324 Registered: 10-2003 |
^but less than half as much loss as a year ago. | ||
Rbdetsport Member Username: Rbdetsport Post Number: 337 Registered: 11-2005 |
I think its the new Ford Edge that is doing the trick. | ||
Sknutson Member Username: Sknutson Post Number: 912 Registered: 03-2004 |
quote: Wrong. Its because of the Escape that I bought. | ||
Cambrian Member Username: Cambrian Post Number: 1367 Registered: 08-2006 |
It's all due to the sale of Aston Martin. I wonder how they'll make profits when there's nothing left to sell off? | ||
Ndavies Member Username: Ndavies Post Number: 2708 Registered: 10-2003 |
They made a profit for the quarter even if you remove the one time occurrences, such as the sale of Aston Martin. This is what really surprised the analysts. Unfortunately a profit in one quarter usually does not equal a profit for the entire year. We'll have to see if they can gain any momentum off this one quarter of profit. | ||
Jdkeepsmiling Member Username: Jdkeepsmiling Post Number: 287 Registered: 01-2006 |
I think that Ford even stated that it still does not expect to make a profit for 07', even with this quarter. This must be a huge moral boost for everyone over in Dearborn and the people on the lines though. | ||
Goblue Member Username: Goblue Post Number: 190 Registered: 03-2007 |
We need to remember that Bill Ford laid the groundwork for the turnaround. Alan Mulally is doing a great job building on the foundation that was established. | ||
Lilpup Member Username: Lilpup Post Number: 2502 Registered: 06-2004 |
It was interesting to hear Mulally talk about the negative culture that had taken over the higher ups before he arrived. Bad, unsupportive attitudes really can start at the top at filter down. Bill Ford didn't seem to have the willingness to take his people to task, so his ideas never had a chance to take off until Mulally cracked a little whip (no disparaging co-workers or their ideas, pay attention at meetings, behave like adult business professionals, not frat boys). | ||
Ray1936 Member Username: Ray1936 Post Number: 1699 Registered: 01-2005 |
"It's all due to the sale of Aston Martin. I wonder how they'll make profits when there's nothing left to sell off?" Uh....same way as the City of Detroit?  | ||
Goblue Member Username: Goblue Post Number: 191 Registered: 03-2007 |
Lilpup: I think you might be right...I have a friend who knows Bill Ford personally in A2...her observation is that he is a tremendously nice person...that characteristic may not have translated into what FoMoCo needs right now. I used to have another friend...now deceased...he was once the administrative ass't to Henry the First...he knew Lee Iacocca...said he was the most miserable SOB that he ever knew. Hank the Deuce pretty much said the same when he fired him..."I just didn't like the SOB." | ||
Johnlodge Member Username: Johnlodge Post Number: 1347 Registered: 10-2003 |
"he is a tremendously nice person...that characteristic may not have translated into what FoMoCo needs right now. " They call that "Alan Trammell" syndrome. Sometimes the nice guy can't get it done. | ||
Livernoisyard Member Username: Livernoisyard Post Number: 3511 Registered: 10-2004 |
quote:Cambrian apparently doesn't understand typical terms used on financial reports and reporting... quote: Operating profit applies to their core business and not being due to extraordinary events, such as divestitures, etc. | ||
Pffft Member Username: Pffft Post Number: 1327 Registered: 12-2003 |
Mulally seems to be insisting that all must forget the turf battles and work together, so if he's tough enough to change the culture, he'll win ... | ||
Goblue Member Username: Goblue Post Number: 194 Registered: 03-2007 |
Sometimes ya just gotta kick ass and take names whether you want to or not...ya don't gotta like it but sometimes its gotta be done. Let's hope that Mulally can do it...there's a lot riding on it. | ||
Terryh Member Username: Terryh Post Number: 424 Registered: 11-2006 |
The big three has been crying broke and struggling for years. | ||
Cambrian Member Username: Cambrian Post Number: 1376 Registered: 08-2006 |
Looking up, but how much credit does Mulally deserve, and how much credit does selling off assets deserve?: FORD SURPRISES INVESTORS WITH QUARTERLY PROFIT…Ford Motor Co. stunned Wall Street by reporting its first profit in two years: $750 million in the second quarter vs. a $317 million loss a year earlier. The company credits heavy cost cutting, a better sales mix, fewer fleet sales and robust overseas sales. The sale of Aston Martin and the elimination of 6,400 jobs in the quarter also helped. Revenue rose 6% to $44 billion as volume fell 2% to 1.77 million vehicles worldwide. Ford’s North American auto unit narrowed its operating loss for the quarter to $279 million from $789 million in red ink last year. The company says its U.S. market share rose to 15.6% from 15.1% in the first quarter. Ford’s overall auto business swung to a pre-tax profit of $378 million vs. a $716 million loss a year earlier with profitable auto operations everywhere except in North America. Even its Premier Automotive Group posted a $140 million pre-tax profit after losing $162 million a year earlier. Ford Motor Credit Co. netted $62 million in the second quarter vs. $304 million in the year-ago period. |
