Ford earned $2.7B profit in 2009, predicts repeat in 2010

[HighestOfHigh]

Ford Motor Company has reported a fourth quarter profit for 2009 that helped the Dearborn, MI-based automaker end the last fiscal year in the black, its first yearly profit in about four years. While Ford's 2009 Q4 income was $868 million versus a loss of $5.9 billion the year prior, the effect on the year as a whole put $2.7 billion in the automaker's pockets versus a loss of $14.8 billion in 2008. What's more, Ford's Chief Financial Officer Lewis Booth forecasts a profitable 2010 and raised the company's outlook in 2011 from "break-even or better" to "solidly profitable."

Booth did caution that much of last year's profit had to do with debt restructuring, but Ford also lowered its structural costs in Q4 by $500 million and $5.1 billion for all of 2009, which also beat the company's own goal of a $4 billion reduction.

While financial numbers are difficult to understand and even harder to explain, there is one thing Ford announced that we're sure everyone can understand. The company will raise its first quarter production levels in North America by 20,000 units, from 550,000 to 570,000. This will help Ford meet rising demand for its cars and trucks and keep inventory hovering around a 60-day supply, the industry standard.

- Ford earned $2.7B profit in 2009, predicts repeat in 2010 — Autoblog

 

[Wunderkind]

So the Cash-For-Clunkers will come back in 2010......................................

There is nothing better than a government bail-out.

 

[Wunderkind]

FORD: Found-On-Rubbish-Dump

 

[HighestOfHigh]

^Thanks for the positive remarks!

On the other hand Ford never asked to be bailed out nor did they go chapter 11 like our good friends at Chrysler and GM. Not to mention cash-for-clunkers program only ran a small portion of 2009. This profit is really due to good planning and better products. Give Ford some credit for heaven sake. Not everything needs to be German to do a good job.

 

[Wunderkind]

^Thanks for the positive remarks!

On the other hand Ford never asked to be bailed out nor did they go chapter 11 like our good friends at Chrysler and GM. Not to mention cash-for-clunkers program only ran a small portion of 2009. This profit is really due to good planning and better products. Give Ford some credit for heaven sake. Not everything needs to be German to do a good job.

I agree with you. Ford's management did a much much better job than Chrysler and GM before the crisis. Their new models (really good small cars such as the Focus and Fiesta in Europe) came at the right time and they also shed Aston Martin, Jaguar/Land Rover at the peak of the market and raised capital while they could.

But they would have been in some serious trouble without cash-for-clunkers.