• Apr 24, 2008
Ford Motor Company had a first quarter that was much better than analysts expected. It recorded in its ledger a net income of $100 million, which compares favorably to the $282 million it lost during the same quarter last year. Revenue fell 8% to $39.4 billion, but that doesn't include the sale of Jaguar / Land Rover. Of course, market's outside the U.S. are what helped Ford the most, with South America, Ford Europe and the Asia Pacific Africa regions all contributing to the cause. But Ford's home market in North America didn't do as much damage to the bottom line as analysts thought it would. Here in the U.S., Ford reported a pre-tax loss of $45 million, which is a major improvement over the $613 million lost last year. Most of that improvement is due to cost-cutting measures that saved the automaker $1.2 billion and includes not only reducing the volume of cars produced, but also reducing the workforce. Ford has already offered buyouts to 54,000 UAW workers, and going forward plans to offer targeted buyouts to specific plants and workers building specific vehicles. Ford also shaved 20,000 vehicles off of the total number of vehicles it plans to build in Q2 2008, bringing the number down to 710,000 or 101,000 fewer cars than Q2 2007.

Ford is clearly prepared to shrink its way to profitability, and that's fine as long as the fewer vehicles it does build connect with consumers. Just like GM's strategy is to dig itself out of a fiscal hole on the popularity of new products, so must Ford wow us with some incredible cars. The Flex, 2010 Mustang, Fiesta, next-gen Focus, redesigned Taurus... you're on.

[Source: Reuters]


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  • 36 Comments
      • 6 Years Ago
      Wow great job. Things are starting to look up.
      • 6 Years Ago
      It will be a net loss next quarter. Unless they sell off mercury maybe?
        • 6 Years Ago
        except the sale of Jag and LR isn't counted in here or weren't you reading the same article as I was?
        • 6 Years Ago
        Cant sell Mercury.
        Mercury=rebadged Fords.
      • 6 Years Ago
      Good job Ford!

      I am glad to see an American company is using their global ties to succeed, and promise us brighter future offerings.

      Keep up the good work.
      • 6 Years Ago
      ... Kudos for Ford !!! ... they are really doing very well.
      • 6 Years Ago
      Kicking myself for not buying their stock when it was at 5.
        • 6 Years Ago
        heck...kicking myself for setting the buy limit too low (at 7.95) this morning during the conf. call.
      • 6 Years Ago
      This is really good news and whats even better is Ford is still sitting on a large amount of cash. Before everyone flys off the handle and says dumb things like "they should use that for RWD Fusion or Euro Focus!" remember, Ford, GM and Chrysler have to pay into the VEBA fund for the UAW this year. Its a one time payment and Ford can pretty much pay for it without borrowing where GM is going to have to borrow which is bad because their credit rating is so bad.

      So Ford is in alot better shape than many on here either want to believe or wish they weren't. The product will take care of itself over the next couple years with the entire line up being turned over in the next 5 years as well as new products added. There are still challenges but it shows that the Mullaly investment is working and Farley will take care of the product in time.
      • 6 Years Ago
      Ford makes great products for Europe.I'm sure that is where most of the profits are coming from. The Mondeo, Focus, and Fiesta are loved cars with a higher build quality than we get here.
      • 6 Years Ago
      I wish they would focus on making cars they can sell instead of surviving on selling less cars. What kind of business sticks around for a long time when its focus is on being smaller and selling less?
        • 6 Years Ago
        A business that suffers from excess infrastructure and products that have less demand than production. By shrinking to a size the market can support the company can cut losses and put their money into making quality cars the market wants.
      • 6 Years Ago
      I don't think the sale of Jag/LR is included in the net income. Ford lost less in the states and gained more in other markets this quarter. If the sale was included they would have made much more.
      • 6 Years Ago
      Very good news-- we're shopping Ford for the first time in a long time in our family and the line-up is very attractive.
      One thing that always surprises (stings) me: The amount of cynicism BY Americans TOWARD American companies! It is very fashionable in some circles to villify anything American and all of the US icons... some of these by 'anti American' citizens. While I can think of many reasons why this would happen, it's still hard for me to imagine any other country or culture in the world that so actively hates its own! What's with that? Are we all so spoiled and selfish that there is such a lack of goodwill towards our fellow citizens? Sad that so many 'progressive thinking' (closed minded) Americans take so much for granted.
      GO FORD!
      • 6 Years Ago
      It's really amazing that Ford is the strongest of the Detroit 3--at least financially. The product line-up is terrible with mostly badge-engineered vehicles.

      BUT I do give Mulally and gang props for keeping it low-key and producing some tangible results. This new Drive One campaign has some real potential and Jim Farley may have been the best hire that Ford has made in decades.
        • 6 Years Ago
        behind Mulally, that is. 8^)
        • 6 Years Ago
        The Fusion is most definitely a good product. The interior *styling* lacks polish, but fit and finish are little worse than an Altima's, and it's one of the best-handling and -steering cars in its class. And a loaded V6 rings in right around $20K. A great budget purchase.

        What frustrates me is how many of Ford's best cars are also its slowest sellers. The Five Hundred/Freestyle/Taurus/X were fabulously space-efficient and comfortable cars. They were just style-free and undermarketed. The Fusion doesn't sell a whole lot better.
        • 6 Years Ago
        Do you live under a rock? Edge-Fusion-F Series are very profitable and good products.
          • 6 Years Ago
          "Patate:
          Do you live under a rock? Edge-Fusion-F Series are very profitable and good products."

          Right...thats why the Camry pretty much quadruples the Fusion sales month after month after month.

          And I wouldn't exactly call the good products either. The interior on ALL of those models have extremely low quality materials...the only manufacturer that has worse interiors is Chrysler.

        • 6 Years Ago
        Matt: By your standard, Airbus should just commit Hari-Kari, because Boeing still dominates them.

        Camry sells more because there are lots more uninformed folks that still believes that Toyota makes a better product.

        Take a look at GM for example they do not have a single model that outsells the Camry (yet), but they still sell more cars in this market segment than either Toyota or Honda.

        Honda and Toyota each have a single entrant in this segment, GM has 5, all good cars.

        The Impala, Malibu, Aura, G5 and Lucerne. Not sure if the G8 belongs in this segment. I it like that GM gives 5 or 6 flavors to choose from.
        • 6 Years Ago
        I was just blown away to learn Jim Farley is Chris Farley's cousin.
      • 6 Years Ago
      As a shareholder, I received the proxy voting packet from Ford this week. On the inside cover of the financial info book was a photo containing the US Fusion and the US Focus along with the new Fiesta *hatchback*.

      I hope that means we're getting it here!
        • 6 Years Ago
        Show us pics please
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