Ford racks up $2.6 billion profitFri, 23 Jul 2010 00:00:00 -0700
Ford Motor Co. reported a second-quarter profit of $2.6 billion as U.S. sales rose 20 percent and the automaker continued to gain market share.
Ford earned $2.1 billion on automotive operations, compared with a year-earlier loss of $1.1 billion on that basis. Revenue rose $4.5 billion to $31.3 billion.
The results surpassed an earlier projection by CFO Lewis Booth, who said in April that the company's first-quarter profit of $2.1 billion would be the year's strongest. Ford said today the second half won't be as profitable as the first half.
“We delivered a very strong second quarter and first half of 2010 and are ahead of where we thought we would be despite the still-challenging business conditions,” CEO Alan Mulally said in a statement.
Ford ended the quarter with automotive gross cash of $21.9 billion, down from $25.3 billion at the end of the first quarter. The company attributed the decline to debt-reduction efforts and product launch costs.
“We remain on track to deliver solid profits and positive automotive operating-related cash flow for 2010, and we expect even better financial results in 2011,” Mulally said.
Ford said its automotive debt fell to $27.3 billion from $34.3 billion at the end of the first quarter. The automaker also said that by the end of 2011, it expects to move from an automotive net debt position to a net cash position.
Ford's U.S. market share stood at 17.5 percent through June, up almost 1.5 points from the year-earlier figure and up a tenth of a point for the quarter.
By Jamie LaReau- Automotive News