Ford reports $997 million profit
Monday, November 2nd, 2009
Ford on Monday reported a net income of $997 million for the third quarter of 2009, compared with a net loss of $161 million for the same time period last year. Perhaps even more significantly, Ford’s North American division reported pretax income of $357 million — its first profit since the first quarter of 2005.
Another bright spot is Ford Credit, which reported a pre-tax operating profit of $677 million, compared with a pre-tax profit of $161 million a year ago.
“Our third-quarter results clearly show that Ford is making tremendous progress despite the prolonged slump in the global economy,” Ford CEO Alan Mulally said in a statement. What’s more, the automaker expects its positive cash flow to continue into the forth quarter.
But Ford isn’t saying what to expect in 2010. A decrease in scrappage programs around the world, an economy that remains shaky at best, and ongoing labor negotiations mean the automaker — which has lost over $30 billion in the last three years — is not out of the woods yet.
Mulally reiterated Ford’s expectation of a full-year profit in 2011. He said the automaker expects to transition from “breakeven or better” to “solidly profitable.”
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