Ford Surprises With $1B Profit; Sees Profit in '11

ABC News ^ | 2 Nov 2009 | TOM KRISHER and DEE-ANN DURBIN

[Rummyfan]

Ford, the only Detroit automaker to dodge direct government aid and bankruptcy court, surprised investors with net income of nearly $1 billion in the third quarter and forecast a "solidly profitable" 2011. The automaker said Monday earnings were fueled by U.S. market share gains, cost cuts and the Cash for Clunkers program, which drew flocks of buyers to showrooms this summer.

Ford's shares rose 58 cents, or 8.3 percent, to $7.58 in pre-market trading. The latest results signal that Ford's turnaround is on more solid ground. The company lost more than $14.6 billion last year and hasn't posted a full-year profit since 2005. While it made a profit in the second quarter, that was mainly due to debt reductions that cut its interest payments. Dearborn, Mich.-based Ford reported third-quarter net income of $997 million, or 29 cents per share.

[Hodar]

Ford, the only Detroit automaker to dodge direct government aid and bankruptcy court, surprised investors with net income of nearly $1 billion in the third quarter and forecast a "solidly profitable" 2011.

It's almost as if Capitolism works better than fascism. However, the Democrats cannot stand to hear facts that disagree with their world view - so they will put their fingers in their ears, close their eyes and ignore this little bit (actually, only bit) of good news coming from the US Automotive indusry.

[cblue55]

Good for them! Take that Government Motors!

[TaxPayer2000]

I’m not surprised.

[wolfcreek]

And I helped.

[Tijeras_Slim]

The UAW will fix this unfortunate situation.

[pieceofthepuzzle]

IN the spirit of Obama economics shouldn't Ford have to spread some of that financial success around, to help out the less successful car companies that have been unfairly treated by the public?

[TheBattman]

Won’t last long... remember, the UAW members voted to not accept the contract that the union leadership endorsed. They want MORE MORE MORE...

[TexasCajun]

I’m a Chevy guy, but if I was in the market for a new truck, I doubt seriously I would buy Government Motors.

[SlowBoat407]

I think my next car may just be a Ford. I fear that the government may find a way to penalize them, though, either through a “non-bailout receiver’s tax” or a heft surcharge that bailout recipients are somehow exempt from.

[concerned about politics]

Whenever I see someone driving a welfare auto, I can't help but think they live on some kind of social program. Welfare breeds welfare.
"That which is like unto itself is drawn."

[brownsfan]

“I’m a Chevy guy, but if I was in the market for a new truck, I doubt seriously I would buy Government Motors.”

I’m a Chevy guy too. I still own an old Corvette. I will not buy a new GM product, not for the forseeable future. I do own stock in Ford, and will look at Fords first.

[Psycho_Bunny]

"Ford, the only Detroit automaker to dodge direct government aid and bankruptcy court, surprised investors with net income "

If you understand the first part of that sentence, the second part isn't a "surprise."

[mikelets456]

It's almost as if Capitolism works better than fascism. However, the Democrats cannot stand to hear facts that disagree with their world view .......................................................................................................................................................................................... I'm sure Zero and his minions will "audit" Ford, add restrictions and make it very difficult for them to prosper from here on out....

[ontap]

Glad to see the only American manufacturer that did not belly up to Obamamobile is doing well.

[taxcontrol]

More likely, they will tax the “obscene profits” of Ford or put such regulation on it that they have to pass the costs onto the consumer and drive customers away.

All because they want their Government Motors program to not fail.

[jersey117]

Won’t last long... remember, the UAW members voted to not accept the contract that the union leadership endorsed. They want MORE MORE MORE...

Ford should tell them to go pound sand. There are plenty of jobless people out there ready to step in.

[FrankR]

I own two chevy's...both 2001 vintage...they're paid off, in good shape, and I'll be keeping them for a while now; but, when I do decide to upgrade I will never again buy a Government Motors product. Probably not a UAW product either...I just don't have it in me to support those obama supporting @$$holes.

I think a lot of people feel this way, and that was a major contributing factor in the good numbers from Ford.

Ford's success and GM's fall is another prime example of my late Father's favorite saying, "You are only enslaved to the extent of charity that you receive."

[taildragger]

Folks...

I'll say it again, here is Sarah's VP Candidate.

My auto gnome tells me for quite a while that the H20 Cooler talk has been does this guy have a political future.

Also...

Shame on the UAW.

"If Alan Mulally is ok with his pay so are we". Dumb @$$es. Mulally is akin to a Ted Williams, Joe Dimaggio, and Tiger Woods. These silly rabbits on the line are probably good people, but they are not .350 hitters, they are replace-able and cannot command their pay given the competitve cost structures worldwide. Shame on them for not knowing basic Econ and Accounting....

[TheBattman]

Ford should tell them to go pound sand. There are plenty of jobless people out there ready to step in.

Unfortunately, that is not an option. Their pants are located in union states - they can't just fire them - by law.

Second, even with the supposed profit, it costs a LOT to move a factory to a right-to-work state, train a whole new work force, and start all over. Far more than ANY creditor is going to give ANY auto maker at this point in the game.