News - Ford
Ford back in black
Any colour, as long as it is black: Ford CEO Alan Mulally has presided over Ford's return to profit.
FoMoCo records its first quarterly profit since Q1 2008 – and since Q1 2005 in US
3 November 2009
FORD Motor Co has posted its first quarterly pre-tax operating profit since the first quarter of 2008, following a net income of almost $US1 billion in the three months to September.
Based on a reported net income of $997 million ($A1.1b), which represents a $US1.2 billion ($A1.329b) improvement over the third quarter of 2008, Ford has reported a global pre-tax operating profit of $US1.1 billion ($A1.218b) – up $US3.9 billion ($A4.319b) on the same quarter last year.
The result includes the first pre-tax operating profit in North America since the first quarter of 2005, at $US357 million ($A395m).
During Q3, Ford increased its year-on-year market share in North America, South America and Europe, with Volvo also gaining share. Ford’s Asia Pacific Africa region, which includes Australia, remained static.
Ford said that it achieved the result by reducing its automotive structural costs by $US1 billion ($A1.1b) in Q3, bringing the total reduction to $US 4.6 billion ($A5b) during the first nine months of 2009 and exceeding the full-year target of $US4 billion ($A4.4b).
Combined with a pre-tax operating profit of $US677 million ($A750m) for Ford Credit – up $US516 million ($A571m) from Q3 2008 – Ford now says it expects to be “solidly profitable” in 2011.
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