Ford: We'll make a little coin in 2009
Crystal ball time. Ford CFO Don Leclair has reiterated that the North American automotive operations will be profitable in 2009, even if only slightly. In Ford's announcement today, Leclair showed a chart that one analyst said displayed a "thin sliver of profits." Peter Nesvold of Bear Stearns estimated the 2009 profit from the chart at around $250 million. After Ford's North American loss of $3.3 billion, any profit is a good one.Leclair went out of his way to say that the profit projection, just like the moves being made in Ford's operations, are a work in progress. Committing to a large profit with all of the market's uncertainties would be unwise. They are basing their profit projection on a market of around 17 million vehicle sales. The conference call Leclair was participating in was covering Ford's restatement of Q3 earnings.
[Source: Automotive News, sub req]
Reader Comments (Page 1 of 2)
MIKE 10:34PM (11/14/2006)
real meaning of FORD: FOUND ON ROAD DEAD....FIXED OR REPAIRED DAILY....FOULED OVER REAL DESIGN...
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Ben 10:44PM (11/14/2006)
FORD....
For Outstanding Reliability & Durability
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That One Person 11:36PM (11/14/2006)
Mike, shut up...those sayings are getting old and pretty annoying. And they would have applied to Ford's vehicles like fifteen years ago. And if thats the case, how about those fifteen year old Hondas that seemed to rust through within the first three months of ownership?
Get a life and a clue...
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stan 11:20PM (11/14/2006)
mike sounds like he is a wealth of redneck humor . how about something with a little thought. those jokes stopped being funny in the 3rd grade.
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Petey 11:36PM (11/14/2006)
Yay, that only 9 more billion dollar losing quarters.
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Andy 12:17AM (11/15/2006)
"Fix or Repair Daily" was from way back in the 1980s. Ford operations could be profitable in 2009 if it trims production to help increase demand. Of course, that would also require desirable products. The Mustang, Fusion, and Mazdas seem to be the only desirable vehicles from Ford. (And the Jaguar XK is a dud.)
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Infinihertz 12:14AM (11/15/2006)
Petey, you may be right, but no one from Ford has stated there will be 9 more billion dollar losing quarters. I'd *hope* that in 2007 and 2008 that although there will be losses, it'll be a lot less as they approach profitability (i.e. a couple hundred million dollar loss).
Also, I agree with the others that Mike is an idiot.
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Ali 12:35AM (11/15/2006)
I have a 94 taurus thats still the best car. I haven't had a problem yet.
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RZ 12:46AM (11/15/2006)
I think Ford should sell some of its brands, like Volvo, Land Rover, Aston Martin and Jaguar.....Jag never made money, AM once every 40 years, and LR has the WORST quality of all vehicles in USA for last few years.
Volvo, well what is Volvo, now they make V8 SUVs, which compete with Lincolns, they make family sedans that compete with Fusion/500.
Ford needs to sell them and use all that cash to invest in new SUVs....Edge won't do it. Mazda is hot now but they need more products to stay hot, why not add more money there. Why not make a really good Town Car, which sells for about $30,000+ doesn't needs much HP because it is a TAXI and not a car that general public buys, so they can use an old engine, no need for fancy features, keep it simple. Also it wouldn't hurt to invest into hybrid Town Car. Also Ford needs a LUXURY car, they need to either Kill Lincoln Brand and keep Jaguar or try to really comeup with ALL new Lincolns to compete with Lexus, Cadillac, Benz. Not just a copy of Fusion and 500, but all new Lincoln.
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hmmm 1:06AM (11/15/2006)
Hey MIKE ya forgot one, " fix it again tony " oops wait that was another manufacturer, lol. And now really how does ford know they will make any money in 2009? seeing there first way forward thinking in 2002 said they would be profitable by now !!! ITS ALL ABOUT GOOD PRODUCT FOLKS, good product good sales, no product as in fords case no mula !
Cant wait for the huge propoganda PR move they plan to install tommorrow in there daily press bullcrap release ! perhaps they found a coupe bucks under bill fords desk next to a jar of exec lube and will change there last 3 quarters earnings statement ???
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Brian 1:23AM (11/15/2006)
Why do people have to bash other american car & truck manufacturers? I would mutch rather trash all the forigen junk out on the road. And for all you ford haters the past say's it all...... F-Series the best selling truck for 28 straight. I love all 7 of my Ford's , 5 of them are diesel, but it's ok you don't have to love them, that's what makes the world go around. But if they were truly garbage no one would own them !
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Doug 5:28AM (11/15/2006)
I disagree about Fords quality and "disirable", what about the 500? Have "any" of you driven one? Or owned one. It's the best automoble and safest automobile on the market.
I can vouche for that. This vehicale save my life in August. I had a 2005/500, a lady ran a red light, well needless to say if it was not for he quality of this automobile I would not be here. I bought another one (2006!)
I will never own another brand. I have had Chevy, Mazda, Honda, Buick, Olds,Nissan (Datsun), Chrysler (BLA!), Ford is the best.
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Doug 5:31AM (11/15/2006)
Sorry about the spelling............ did'nt use spell check.Da.........GO FORD
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JJ 6:06AM (11/15/2006)
Hey Mikey, you forgot one...Friggin' Old Rebuilt Dodge!
I just hope someone in Fordland can come up with some new looks. That trademark grill is pretty old!
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Tina 7:16AM (11/15/2006)
Unions, Unions, Unions-a black eye on american companies.
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Richard Warren 7:50AM (11/15/2006)
"Fix or Repair Daily" was from way back in the 1980s
Hello!!! That sayings been a round much longer than that I can remember my dad using it in the 50's.
Surpised no one remembered "Frickin old rusty deathtrap"
Every make has it's detractors and negative quality issues, yes even the vaunted Toyota, but the reality of the situation is far different.
As for Fords current problems. How many of you folks own your own business? You have good times, you have bad times, the market changes, folks love ya or don't. You have profit years, and non profit years, you have to expand or pull back. It's called business and just like sports you can't win every game. My biggest wish is that everyone owns and runs their own business for at least five years, then let me know how well it went.
If Ford can pull a profit in a tough market, good for them.
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Stoneman 8:24AM (11/15/2006)
It's a sad time to be a Ford invester.
Stoneman
http://www.stonemanautoreview.com
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Jim Cip 9:22AM (11/15/2006)
Hey Mike
SHUT UP!
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leo 1:21PM (11/15/2006)
who siad it's a sad time to be a Ford investor - they are in their up adn coming an dbuy it while is cheap doesn't say enough
in december '05 GM's stock was at $19-20/share - well someone also said it's a bad time to be a GM stock buyer, but now their stck is $34/share
Now that's a profit margin for investors - of course i am young so i did not own any GM stock till then, so i never lost any money on their stock - just made a bunch of it
FORD - as soon as I see them making a good product i'm doing the same - but lots of stock cheap - sell it for tons of profit - and it will happen, this i know
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jamie 11:20AM (11/15/2006)
90 DAYS!
That is how long it should take to turn around Ford. If you can't do it, then you shouldn't be in the business. Any businessman worth his salt could perform this 'miracle'. But why don't they? Because they are trying to milk the system and tune it to their own agenda instead of seeking the greater reward for all.
Simple.
Ford (North America division) makes and sells 2-3 million vehicles per year.
If they made just $1000 profit per vehicle, they would take in $2-3 BILLION.
Yeah, their cost structure is out of line, but they are working on that (albeit much too slowly).
Obviously Ford cannot manage more than one or two brands at most. Therefore sell PAG. Dump Mercury. Combine Lincoln and Ford. Get back to the basics of what made Ford great in the first place.
Product is a big part of the problem.
Mazda should manufacture Ford's small cars. They're hot!
Ford needs to move upscale, then design and manufacture NEW RWD coupes and sedans to compete with BMW at half the cost. This is entirely feasible.
Similarily Lincoln most move further upscale and lose its livery label. Hot rod Lincolns could be the cat's meow. Let's blow Jaguar out of the water! More powerful modern DOHC 8 cylinder engines.
Ford trucks need to economize for the future. Cut weight and improve engines and transmissions. Also new styling would attract new buyers.
Results should be evident within a year at the latest.
Now Mullaly go get'em!
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