Ford announced Friday a profit of 2.6 billion in the second quarter and said it expects to have more money than the debt by the end of 2011.
Dearborn, Michigan - In two years, the Ford Motor Company has been losing more money from its history to win 26 million dollars a day
It was the fifth consecutive quarter of profit and best profits since 2004 for Ford, whose recovery has been accelerating, with the company to increase sales and market share in the U.S. even as the market continues stagnate.
During the first six months of this year's, Ford earned a profit of 4.7 billion dollars, and managers should improve further in 2011 as improved sales and new models have reached their own pace.
"They made all the right moves. It has been overwhelming," Rebecca Lindland, auto analyst at research firm IHS Global Insight, said. "They just have an incredible amount of momentum right now."
Ford executives cautioned that the second half of 2010 would be less profitable than the first, but even if the company is already more than two-thirds of the way to the adequacy of 1999 earnings of $ 7.2 billion , the highest ever for an automaker in Detroit. Yet it has half of many employees and is on track to sell two million vehicles worldwide under this year than 1999, shows a much more efficient Ford has done.
"I'm not sure it will be a record year, but it will be a great year," Ford chief financial officer, Lewis WK Booth said. "We did what we said we would do. It just maybe a little faster than we thought. "
Including special items, earnings for the second quarter of Ford was equal to 61 cents per share. In the same period a year ago, it lost 21 cents a share.
Revenue was $ 31.3 billion, up 17 percent over the same period a year ago.
Ford earned $ 2.1 billion from its automotive operations, including $ 1.9 billion in North America, in contrast to losses of 1.1 billion. billion and $ 899 million a year ago, respectively. Revenue in North America jumped 58 percent to 16.9 billion dollars that the vehicles ordered to higher prices. All other regions have also been profitable.http: / / jodnet.blogspot.com
"We're ahead of where we thought we would post this very good first half," CEO of Ford Alan Mulally R., said in a conference call. "The driving forces of our progress is our new products and our meager overall structure."
Ford reported positive cash flow of $ 2.6 billion in the second quarter, leaving a total of 21.9 billion dollars in reserves of June 30. In 2008, when Ford lost a record $ 14.8 billion, it was burning through nearly $ 2 billion in its cash every month.
But the company ended the quarter with $ 27.3 billion of debt, even after paying down $ 7 billion.
Mr. Booth said Ford would shift to a net cash position at the end of next year, but refused to reveal specific plans to repay the debt over. He said the company would also aggressively as possible while maintaining sufficient liquidity to weather shocks "unexpected."
"It is our ambition to continue paying down debt," said Booth. "We will continue to watch our cash position closely because we have learned over the last two years that the liquidity is king."
Ford makes the debt much more than its rivals Cross City, who managed to erase a large part of their obligations through the bankruptcy process. Most of Ford's debt comes from its mortgage assets of most of the company in 2006, a prescient move that eventually enabled them to survive without a government bailout.
"The size of their debt is the biggest negative, but they are not ignored. They are not putting their head in the sand," Ms. Lindland, analyst IHS said. "If we can do this kind of profit in this very conservative, just wait till this place is really starting the recovery and the global market begins recovery."
Ford's sales in the U.S. rose 28 percent in the first half of 2010, nearly double the industry average. Its market share rose to 16.9 percent from 16.4 percent a year earlier.
Sales in the industry have slowed in recent months, however, raises concerns about the economic recovery.
Ford now expects manufacturers to sell a total of 11.5 to 12 million vehicles in the U.S. this year. Previously, Ford had projected industrywide sales to be as high as 12.5 million. In the first half, the automakers were in the process of around 11.4 million sales in the United States. (Before the recession, sales of new vehicles in the U.S. top 17 million per year for most of the last ten years.)
But Ford does not think the economy is stalled.
"It's a slow recovery, but we think it's sustainable," said Booth.
Mr. Booth said Ford expects to spend about $ 1 billion over steel and other raw materials this year than in 2009 due to higher prices. structural costs should also be about $ 1 billion higher, reflecting increased production and increased spending on vehicle engineering and development, he said.
automaker's financial arm, Ford Motor Credit Company earned $ 888 million in the second quarter. Executives said Ford Credit should not work as well in the second half, but it would end the year more profitable than 2009.
The company recently began selling its subcompact car news, Ford Fiesta, and has several important model introductions on the horizon, including the Ford Explorer vehicle crossover and a redesigned Ford Focus compact car.
Ford stock rose 63 cents, or more than 5 per cent to 12.72 per share
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