Ford posts $100 million Q1 profit, Volvo loses $151 million

Posted Thu Apr 24 2008 6:59 AM by Siddharth Raja

Despite facing a number of challenges this past quarter, ranging from rising fuel prices, unfavorable exchange rates, and an economic downturn both in the U.S. and abroad, Ford has managed to post a profit of $100 million – up from a net loss of $282 million just one year ago. Revenues for the period were also up, totaling $43.5 billion for the first three months of the year – an increase of only half a billion dollars on the same period last year.

Ford still posted a pre-tax loss of $45 million in North America but this represents a substantial improvement on last year’s loss of $613 million. In Europe Ford posted a pre-tax gain of $739 million but this result does not include any losses or gains from either Jaguar or Land Rover, which were formally sold to India’s Tata during the quarter.

"The improvement reflected cost reductions of $1.2 billion, including lower structural and product costs," Ford said in a statement. "These improvements were partly offset by unfavorable volume and mix, and net pricing."

The initiatives of CEO Alan Mulally, who stepped in less than two years ago, are showing positive results during the worst auto-sales downturn in more than a decade. The challenge now for the former Boeing boss is to return Ford’s North American operations to profitability by 2009.

Volvo reported a pretax loss of $151 million, compared with a profit of $94 million just one year ago, adding to speculation Ford may in fact sell the unit. This is also the first time that Ford has released separate earnings information for the Swedish subsidiary.

Reader Comments

Thu Apr 24 2008 8:39 AM
chris says

thats it. i dont care what anyone says about mullaly... what ever he's doing.. hes doing it DAMNED well. he said profitability in 2009 right? it is the first quarter of 2008 right now right? k just checking.

I'm REALLY happy to see that this doesnt take into account any of the 2 billion that they got for jag/rover.

I'm ecstatic that the ford north american operations only lost 45 million. thats spectacular. thats pennies on every share. I think the share holders will be happy about that.
Thu Apr 24 2008 10:45 AM
ohmy says

well as long as ford keeps up its new found look, on quality and not designing boring cars, me thinks they will be profitable and back on top w/in the next five years
Thu Apr 24 2008 12:54 PM
chris says

well.. the cars are still relatively boring. the 09 fusion family should get some huge styling upgrades or else they'll lose any sort of momentum they had. and that 2010 taurus that was spied is going to make every import lover's face explode.

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