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Ford posts $424 million second quarter loss

 
7 980 views Jul 23, 2009

Ford remains on track to break-even by 2011

Ford remains on track to break-even by 2011

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Ford today reported a pre-tax operating loss of $424 million in the second quarter of 2009 (excluding special items), a $609 million improvement compared with the second quarter of last year. The gains made during the quarter were the result of cost reductions, net pricing, positive Ford Credit results and improved market share, all of which helped offset the continued impact of the global financial crisis.

Including a $2.8 billion gain related to debt-reduction actions sees Ford earning a net income of $2.3 billion, or $0.69 per share. These results compare with a net loss of $8.7 billion, or $3.89 per share, in the second quarter of 2008. What’s more impressive is that the result is based on second quarter revenues of $27.2 billion, which were down more than $11 billion from the same period a year ago.

At the rate that it's going, the company expects to break-even by 2011 and reach profitability in the following year. Incidentally, Ford hasn’t had an annual profit since 2005, and last year's $14.7 billion net loss is currently the company’s worst year on record.

Ford Credit, meanwhile, reported a pre-tax profit of $646 million for the quarter, compared with a pre-tax loss of $294 million a year ago.



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Comments (7)

  1. ma_Chris avatar Chris Posted: 7/23/2009 12:31pm PDT

    this makes up for the last decade of bad news from ford with seemingly good news from the rest of the industry. im so glad to see that ford is pulling through finally.

    mullaly... i dont know what youve done but you deserve every penny of your pay cheque.
     
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  2. ma_mitzo avatar mitzo Posted: 7/23/2009 1:15pm PDT

    Get the promised new product out there ASAP.
     
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  3. ma_bepsf avatar bepsf Posted: 7/23/2009 4:46pm PDT

    Get the promised new product out there ASAP.

    That's what the Big 3 used to do - and look at the endless recalls that ensued...
    ...in fact, look at the recent Camaro recall - the car just wasn't ready despite how many years of development?

    No, it's best to get the new product out there when the product is ready rather than letting initial customers act as QC.
     
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  4. ma_NoNameDenton avatar NoNameDenton Posted: 7/23/2009 9:06pm PDT

    Much better news then last year when the posted a loss of over a billion
     
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  5. ma_moremony avatar moremony Posted: 7/23/2009 10:37pm PDT

    hi ,this is nice cars That's what the Big 3 used to do - and look at the endless recalls that ensued...
    ...in fact, look at the recent Camaro recall - the car just wasn't ready despite how many years of development?
    http://www.propertykoncepts.com/
     
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  6. ma_moremony avatar moremony Posted: 7/23/2009 10:37pm PDT

    hi ,this makes up for the last decade of bad news from ford with seemingly good news from the rest of the industry. im so glad to see that ford is pulling through finally.
    Moremony services is a leading company for Affiliate marketing ,Seo services,Website development Internet marketing.
    http://www.moremony.com
     
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  7. By  attorney Posted: 11/6/2009 1:07am PST

    hi ,this makes up for the last decade of bad news from ford with seemingly good news from the rest of the industry. im so glad to see that ford is pulling through finally.
    attorney
    Moremony
     
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