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Ford Reports $750m Profit!!!
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Posted by: Rick Sample

07-26-07: The signs of recovery are beginning to be seen through the grey skies at Ford. After years off stuggle and sacrifices, there are signs that things are turning around.

Back In the Black
Ford reported today a $750 million profit for the second quarter of 2007. It was a stunning and unexpected announcement compared to the $317 million loss for the same period of 2006. The overall increase in profitability came as a result of higher profits for the European, South American, and Asian units as well as price cutting across the board. Ford reports that they have already saved $1.1 billion alone this year as a result of vast cost cutting that has included shuttering plants and employee buyouts.

The sale of Aston Martin also bolstered the bottom line this quarter, but Ford points our that even without that item a significant profit was made.
"We continue to focus on the four priorities of our plan - restructuring the business to operate profitably, accelerating the development of new products that our customers want and value, funding our plan and improving our balance sheet, and working even more effectively together as one global Ford team, leveraging our assets," said Ford CEO Alan Mulally in a statement released early today. "Our team is very encouraged by the significant progress we are making. We recognize the challenges that lie ahead and remain fully committed to delivering our plan."

Granted, the overall profit still overshadows the underperforming North American division. But the losses are getting smaller and smaller. In the second quarter, Ford North America reported a pre-tax loss of $279 million, compared with a pre-tax loss of $789 million a year ago. Much of this is credited to cost cutting moves as sales were slightly lower than the same time last year.

Ford has also confirmed that the possible sale of Land Rover, Jaguar, and Volvo continues to be examined and bids are being studied. This news only further enhances the hope that Ford will continue to move in the right direction financially.

Posted by: Mustang5L5

Who owns Aston Martin now??