Ford Rolls To Profit
Only one of Big 3 to avoid bailout and bankruptcy rings up $2.3B profit
By GREG WILSON
Updated 9:45 AM EDT, Thu, Jul 23, 2009
Ford -- at least at first glance -- had a stunning turnaround in the second quarter, posting a $2.3 billion profit after years of hemorrhaging cash along with the rest of Detroit.
Although the earnings were mainly due to restructuring debt and not a surge in auto sales, the only company among the Big Three to turn down a federal bailout said it is on track to at least break even in 2011. Unlike GM and Chrysler, Ford also avoided bankruptcy.
“[Ford Chairman Alan] Mulally’s largely achieved all of the benefits that Chrysler and GM received in bankruptcy without a bankruptcy,” said analyst John Wolkonowicz told Bloomberg News.
"For is on a roll right now," he added. "Ford is on a roll like they have not seen for decades."
Without the debt shuffling, Ford posted a loss. But the red ink was less than analysts expected, and far better than the same quarteer a year ago, when the company lostt $2.7 billion. Sales dropped to $27.2 billion in the quarter, from $38.2 billion a year earlier.
First Published: Jul 23, 2009 8:33 AM EDT
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