#98QBKiller Posted January 28, 2010 Share Posted January 28, 2010 While this doesn't mean that all is well for the economy, it's a good sign. I've always been big on purchasing American products, especially automobiles, so it's good to see one of the "big three" make a turnaround. http://www.latimes.com/business/la-fi-ford-profit29-2010jan29,0,7206695.story Ford posts dramatic $2.7-billion profit in 2009 U.S. sales for the auto company rise 13% in the fourth quarter compared to a year before. It was a 'pivotal year' for Ford, says a top executive. By Jerry Hirsch 8:17 AM PST, January 28, 2010 Ford Motor Co. posted a profit of $2.7 billion for the year, a dramatic turnaround for the company, which weathered one of the worst years in the history of the automotive industry in comparatively good health. "While we still face significant business environment challenges ahead, 2009 was a pivotal year for Ford and the strongest proof yet" of the success of the company's effort to forge "a path toward profitable growth by working together as one team, leveraging our global scale," Alan Mulally, Ford's chief executive, said today. In the U.S., sales of Ford brands in the fourth quarter rose 13% from the same period a year earlier. The company grabbed 15.3% of the U.S. auto market, its first full-year gain since 1995. "In every part of the world, we are providing customers with great products, building a stronger business and contributing to a better world," Mulally said. "Our progress has helped us gain market share in most of our major markets." Ford's profit, announced prior to the opening of the stock market, amounted to 86 cents per share and compared to a loss of $14.8 billion, or $6.50, in 2008. Though he expects Ford to be profitable this year, Mulally warns that the economy remains uncertain. "Global economic conditions are reviving but remain fragile," he said. Ford's financial performance triggered a profit-sharing payment to 43,000 eligible U.S. hourly employees that is part of the 2007 UAW-Ford Collective Bargaining Agreement. The average amount is expected to be about $450 per eligible employee. Salaried employees, however, will not get the performance bonuses In morning trading, Ford shares rose 5 cents to $11.60. Revenue in 2009 fell to $118.3 billion from $138.1 billion, a reflection of lower sales resulting from the global economic slump. For the quarter, Ford said it earned $868 million, or 25 cents a share, compared to a loss of $6 billion, or $2.51 a share, in the same period a year earlier. Revenue dipped to $29 billion from $34.5 billion. The company ended the year with $25.5 billion in cash, more than double what it had a year ago. But Ford executives said they remained concerned about the auto company's high level of debt and how that put the business at a competitive disadvantage to U.S. rivals General Motors and Chrysler Group, which were able to shed billions of dollars in loans through their respective bankruptcy reorganizations last year. Ford ended 2009 with $34.3 billion in debt, up $7.4 billion from the end of the third quarter. The increase was a result of Ford borrowing $7 billion to fund a retiree healthcare trust fund run by the United Auto Workers union. "We are fully aware that we have too much debt on our balance sheet. . . . We will continue to work on it," said Chief Financial Officer Lewis Booth. "We still have a lot of work to do to improve the business." Separately, Ford confirmed it had stopped production of some commercial vans in China because they contained gas pedals built by the same company and similar in design to the component involved in Toyota Motor Corp.'s recall. Under some conditions, the pedal can cause unintended acceleration in a vehicle, according to Toyota. Although the Toyota recall affects millions of cars, Ford said its use of the pedal is isolated to a vehicle with limited production of less than 2,000 units. The pedals were built by Elkhart, Ind.-based CTS Corp. and went into the diesel version of Ford's Transit Classic, built by a Chinese joint with Jiangling Motors Co. in Nanchang in southeastern China. Link to comment Share on other sites More sharing options...
Predicto Posted January 28, 2010 Share Posted January 28, 2010 By far the best run American car company. Good for them. Link to comment Share on other sites More sharing options...
twa Posted January 28, 2010 Share Posted January 28, 2010 Debt increased yet they made a profit? Sounds like a govt program. Link to comment Share on other sites More sharing options...
Elessar78 Posted January 28, 2010 Share Posted January 28, 2010 deleted for ignorance and being misinformed. Link to comment Share on other sites More sharing options...
GhostofSparta Posted January 28, 2010 Share Posted January 28, 2010 I guess they knew what they were doing when they turned down a gov't bailout after all. That's an impressive turn-around. Link to comment Share on other sites More sharing options...
The Brave Little Toaster Oven Posted January 28, 2010 Share Posted January 28, 2010 Wouldn't the reason for their profit this year stem from Cash for Clunkers? :whoknows: Link to comment Share on other sites More sharing options...
Predicto Posted January 28, 2010 Share Posted January 28, 2010 I guess they knew what they were doing when they turned down a gov't bailout after all. That's an impressive turn-around. They were the only one that COULD turn down the government bailout. The other two were dead in the water and the corpses were starting to stink. Link to comment Share on other sites More sharing options...
GhostofSparta Posted January 28, 2010 Share Posted January 28, 2010 They were the only one that COULD turn down the government bailout. The other two were dead in the water and the corpses were starting to stink. That's true, but I remember a lot of people urging Ford to take the money as well. I'm hopeful that they're truly better-run now, but I guess I'll have to wait a couple years and see. Link to comment Share on other sites More sharing options...
GoCommiesGo Posted January 28, 2010 Share Posted January 28, 2010 So how much of that get's kicked back to us taxpayers? No auto bailout, no profits. It'd be unfair if that just went all to bonuses and investor dividends. No. I don't think the taxpayers have a legit claim to those profits but time for a PR move, Ford. Become THE American car company. Why would the American people have a claim on a private company that took no bailout money? Ford is also looking at hiring 1200 people they are in a great position to make a strong push, especially with Toyota taking a massive PR hit. Link to comment Share on other sites More sharing options...
MattFancy Posted January 28, 2010 Share Posted January 28, 2010 So how much of that get's kicked back to us taxpayers? No auto bailout, no profits. It'd be unfair if that just went all to bonuses and investor dividends. No. I don't think the taxpayers have a legit claim to those profits but time for a PR move, Ford. Become THE American car company. Well Ford didn't get bailed out so they wouldn't have anything to pay back to us. Link to comment Share on other sites More sharing options...
Elessar78 Posted January 28, 2010 Share Posted January 28, 2010 They ranked pretty highly this year for the cars they made, I think. Which is not usually the norm and Toyota is having massive recalls? WTF is going on? Link to comment Share on other sites More sharing options...
Elessar78 Posted January 28, 2010 Share Posted January 28, 2010 Well Ford didn't get bailed out so they wouldn't have anything to pay back to us. I retracted. I had them confused with the others that did take the bailout. I thought I remembered there being a big deal about how the Big 3 came in private jets to ask Congress for money. Link to comment Share on other sites More sharing options...
NewRegime Posted January 28, 2010 Share Posted January 28, 2010 Ford has become a VERY good car company. I am glad people are starting to realize it. They have become the best bang for your buck. I hope more and more Americans start realizing this and buy Ford. I also hope the other American car companies start building better products and follow suit. Link to comment Share on other sites More sharing options...
MattFancy Posted January 28, 2010 Share Posted January 28, 2010 They ranked pretty highly this year for the cars they made, I think. Which is not usually the norm and Toyota is having massive recalls? WTF is going on? The Focus and Escape were two of the most bough cars during Cash for Clunkers. Link to comment Share on other sites More sharing options...
GhostofSparta Posted January 28, 2010 Share Posted January 28, 2010 I retracted. I had them confused with the others that did take the bailout. I thought I remembered there being a big deal about how the Big 3 came in private jets to ask Congress for money. There was, and Ford was actually part of that group asking for money. They just changed their minds later one and turned down the money offered to them. Link to comment Share on other sites More sharing options...
Hubbs Posted January 28, 2010 Share Posted January 28, 2010 Good news. Happy to see an American company start to turn things around. And GSG is right, Ford should be eying Toyota's market share right now. Link to comment Share on other sites More sharing options...
mjah Posted January 28, 2010 Share Posted January 28, 2010 Ford is making a fair number of really good cars these days. Prior to 2009, I never would have typed that. In this country we seem to love a turnaround story, even if it doesn't start at GM-esque depths. I think seeing a good variety of high quality, affordable, critically acclaimed Ford cars on lots will bring plenty of folks around to buying Ford again, particularly given the timing of Toyota's worldwide recalls. Cash for Clunkers surely helped a lot, but IMO the bigger story is the long-term one: somebody at Ford has gotten the formula right for a few vehicles in a row. I guess we'll see how the new Taurus does. Helluva lot of car for the money, if it's a quality product. Link to comment Share on other sites More sharing options...
TheGoodBits Posted January 28, 2010 Share Posted January 28, 2010 2011 Mustang is going to be a 5.0 V8 again, finally. 512 horsepower. Also coming out with a new GT 350, pictured below. Link to comment Share on other sites More sharing options...
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