Ford posts surprise Second Quarter profit
Ford Motor Company, the only major American automaker that did not take stimulus money, has posted a surprise second quarter profit.
Ford posted a profit of $2.8 Billion in the second quarter. This is followed by Ford's worst loss in history just one year earlier. Ford attributes its profit for the second quarter on a lessened debt load and introduction of new products.
In some circles it is believed if you let market forces do their job, the economy would have been sorted out without a hefty stimulus. Ford seems to be substantiating this since it is doing better than their crosstown rivals, Chrysler and General Motors, which received stimulus bailout and went into bankruptcy protection.
Time will tell if this trend will continue for Ford in the Third Quarter and how successful their rivals will be after they emerge from bankruptcy protection.
Helped by a lightened debt load, Ford Motor Co. posted a surprise second-quarter profit of $2.8 billion US Thursday, following the worst loss in company history a year earlier.
The net profit ends a string of four straight quarterly losses for the country's second-largest automaker, which has gained U.S. market share at the expense of crosstown rivals Chrysler Group LLC and General Motors Co., both of which spent time under bankruptcy court supervision. Ford last went into the black in the first quarter of 2008, with net profit of $70 million.
However, excluding its debt reduction and other items, Dearborn, Mich.-based Ford would have reported a quarterly loss, though smaller than Wall Street expected.
Chief financial officer Lewis Booth said the improved second-quarter results are a sign that the company's cost cuts and emphasis on new products are paying off. He stuck to Ford's earlier prediction that it would return to annual profitability in 2011.
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