Ford Posts $997m Profit, Projects Solid Income - Ford, CAW reach production pact

doh · 11-02-2009, 07:24 AM

Nov. 2 (Bloomberg) -- Ford Motor Co., the only major U.S. automaker to avoid bankruptcy, posted a $997 million net income in the third quarter and its first operating profit since early 2008. It expects to be “solidly profitable” in 2011.

On an adjusted basis, Ford reported a quarterly pretax profit of $1.1 billion, or 26 cents a share, compared with a year-earlier loss of $3 billion or $1.32. Ford beat the 20-cents per share adjusted loss it was forecast to report by an average of 11 analysts surveyed by Bloomberg.

Chief Executive Officer Alan Mulally, who kept Ford out of Chapter 11 as General Motors Co. and Chrysler Group LLC reorganized, is trying to extend sales momentum the Dearborn, Michigan-based automaker built by avoiding a bailout. It posted its first consecutive quarterly net profit under Mulally today.

“Ford is a company that’s well into a turnaround,” said Bernie McGinn, president of McGinn Investment Management of Alexandria, Virginia, which owns about 320,000 Ford shares. “They did it by themselves and didn’t take government money. That gives people a good gut feeling and they’re being rewarded for that.”

The company reported a quarterly net profit of 29 cents a share, compared with net loss of $161 million, or 7 cents, a year earlier. Ford had positive automotive cash flow of $1.3 billion compared with cash consumption of $1 billion in the second quarter. In the year earlier quarter, Ford used $7.7 billion.

Ford finished the third quarter with $23.8 billion in automotive cash, up from $21 billion at the end of the second quarter.

Automotive Revenue

http://www.bloomberg.com/apps/news?p...6C9gLnTU&pos=1

The Canadian Auto Workers union has reached a tentative agreement with Ford Motor Co. that would ensure the company's manufacturing footprint in Canada until at least 2012.

The tentative deal includes a commitment that the company's Canadian operations will manufacture 10 per cent of the vehicles Ford makes in North America.

Union officials have signed off on the deal, but it must be approved by employees, who are set to vote on it over the weekend.

The company currently makes roughly 13 per cent of its North American output in Canada, a percentage the union was pushing to maintain.

"In the end, this was a deal breaker," CAW head Ken Lewenza said. "There had to be a footprint or there wouldn't be a deal."

The company has also agreed to build a new vehicle at its Oakville, Ont., assembly plant, the union said on Friday. That plant, currently operating two shifts, manufactures the Edge and Flex Ford vehicles and the MKX and MKT Lincoln vehicles.

"Production won't start during the life of this agreement," Lewenza said, "but Ford commits to a new vehicle platform for the Oakville plant."

The company has also agreed a third production shift in Oakville when market conditions warrant it, Lewenza said.

http://www.cbc.ca/money/story/2009/1...l.html?ref=rss

doh · 11-02-2009, 07:25 AM

Update

http://www.reuters.com/article/press...09+PRN20091101

The results by location are as follows:

CAW Local 1520, St. Thomas
Production: 80% in favour
Skilled Trades: 81% in favour
Combined total: 80% in favour

CAW Local 200, Windsor
Production: 81% in favour
Skilled Trades: 75% in favour
Combined total: 80% in favour

CAW Local 707, Oakville
Production: 90% in favour
Skilled Trades: 91% in favour
Combined total: 90% in favour

CAW Local 584, Bramalea
Total: 85% in favour

CAW Local 240
Office: 100% in favour

CAW Local 1324
Office: 83% in favour

Combined Totals:
Total Production: 84% in favour
Total Skilled Trades: 81% in favour
Total Office: 94% in favour

Overall total: 83% in favour

davidlane · 11-02-2009, 07:38 AM

Nov. 2 (Bloomberg) -- Ford Motor Co., the only major U.S. automaker to avoid bankruptcy, posted a $997 million net income in the third quarter and its first operating profit since early 2008. It expects to be “solidly profitable” in 2011.

On an adjusted basis, Ford reported a quarterly pretax profit of $1.1 billion, or 26 cents a share, compared with a year-earlier loss of $3 billion or $1.32. Ford beat the 20-cents per share adjusted loss it was forecast to report by an average of 11 analysts surveyed by Bloomberg.

Chief Executive Officer Alan Mulally, who kept Ford out of Chapter 11 as General Motors Co. and Chrysler Group LLC reorganized, is trying to extend sales momentum the Dearborn, Michigan-based automaker built by avoiding a bailout. It posted its first consecutive quarterly net profit under Mulally today.

“Ford is a company that’s well into a turnaround,” said Bernie McGinn, president of McGinn Investment Management of Alexandria, Virginia, which owns about 320,000 Ford shares. “They did it by themselves and didn’t take government money. That gives people a good gut feeling and they’re being rewarded for that.”

The company reported a quarterly net profit of 29 cents a share, compared with net loss of $161 million, or 7 cents, a year earlier. Ford had positive automotive cash flow of $1.3 billion compared with cash consumption of $1 billion in the second quarter. In the year earlier quarter, Ford used $7.7 billion.

Ford finished the third quarter with $23.8 billion in automotive cash, up from $21 billion at the end of the second quarter.

Automotive Revenue

http://www.bloomberg.com/apps/news?p...6C9gLnTU&pos=1

Hitman1970 · 11-02-2009, 07:48 AM

Good for Ford and my Ford stock.

marinerbc · 11-02-2009, 08:03 AM

Sad to see that there is only one private North American car company left, but good for Ford.

jaydee · 11-02-2009, 08:13 AM

Good for Ford, albeit coming when they're trying to get concessions from the UAW is not going to bode well for the next set of negotiations as this contract proposal appears dead in the waters.

It's definitely going to be a big problem for them, but a "better" problem to have than what GM and especially Chrysler face right now.

FenwickHockey65 · 11-02-2009, 08:38 AM

Good job Ford.

Perian · 11-02-2009, 08:40 AM

Quote:

Originally Posted by Hitman1970

Good for Ford and my Ford stock.

$31 billion in revenue. Wow, that's fantastic. Ford production is just 17,000 short of GM for the year as of 10/30.

Selling on the news...I just put a $7.97 sell order in for my Ford shares. Pre-market is $7.60.

1487 · 11-02-2009, 08:40 AM

Quote:

Originally Posted by marinerbc

Sad to see that there is only one private North American car company left, but good for Ford.

Ford is a public company, the other two are privately owned. Also, Chrysler isn't
"government owned" considering the US has a 10% stake in the company. GM is a private company whose largest shareholder is the government.

Quest · 11-02-2009, 08:44 AM

FORD POSTS Q3 2009 NET INCOME OF $1 BILLION; CASH FLOW TURNS POSITIVE; NORTH AMERICA PROFITABLE

•Reported net income of $997 million, or 29 cents per share, an improvement of $1.2 billion from the third quarter of 2008. Pre-tax operating profit totaled $1.1 billion, an improvement of $3.9 billion from a year ago. It is Ford’s first pre-tax operating profit since the first quarter of 2008
•Ford North America posted a pre-tax operating profit of $357 million, its first profitable quarter since the first quarter of 2005
•Reduced Automotive structural costs by $1 billion, bringing the total reduction to $4.6 billion through the first nine months of 2009, and exceeding the full-year target of $4 billion
•A strong product lineup drove market share gains in North America, South America and Europe as well as continued improvements in transaction prices and margins
•Ended the quarter with $23.8 billion of Automotive gross cash, up $2.8 billion from the end of second quarter 2009++
•Achieved positive Automotive operating-related cash flow of $1.3 billion for the third quarter, a $2.3 billion improvement over the second quarter
•Ford Credit reported a pre-tax operating profit of $677 million, a $516 million improvement from a year ago
•Ford now expects to be solidly profitable in 2011, excluding special items, with positive operating-related cash flow

THIRD QUARTER HIGHLIGHTS

•Ford again increased year-over-year market share in North America, South America, and Europe and continued to achieve improvements in transaction prices and margins. Ford maintained market share in the Asia Pacific Africa region and Volvo gained market share. Other sales highlights:

*In the U.S., third quarter market share increased 2.2 percentage points compared to last year as the Ford, Lincoln and Mercury brands all posted sales gains

*Ford Europe’s market share was 9.2 percent for the quarter, up 0.6 points from last year and the highest third-quarter level in 10 years. Market share was 10.1 percent in September, the highest monthly share in eight years

*Record growth in China continued as Ford third quarter sales jumped 63 percent

*At the end of the third quarter, worldwide sales of the new Ford Fiesta reached 470,000 units since its launch last fall. The No. 2 best-selling car in Europe posted its highest September sales since 1994. In September, Fiesta also had its best sales month ever in China. Fiesta arrives in the U.S. market in 2010

*Began selling the new Ford Taurus and Transit Connect in North America. Taurus sales in September were up 60 percent from a year ago

*The Ford Focus and Ford Escape were among the top new vehicles purchased in the U.S. government’s “Cash for Clunkers” program

*Ford’s U.S. hybrid sales have risen 73 percent this year compared to a 14 percent decline in U.S. hybrid industry sales. More than 60 percent of Ford Fusion hybrid sales have come from non-Ford owners

http://www.ford.com/about-ford/news-...2009-net-31244

Compare and contrast with what’s been going on across the street. Ford, started much farther down than their rival.

WishIhadatruck · 11-02-2009, 08:48 AM

Great news for Ford! I'm glad they've been able to accomplish this.

poncho1982 · 11-02-2009, 08:51 AM

Ah, now we see why the UAW rejected the new contract.

They don't need to reduce costs, evidently.

Sorry, couldn't resist.

K-1 · 11-02-2009, 08:53 AM

Great news. Note: this is operating profit, not driven by special items. Cost cutting FTW!

Stock is up 9% after hitting $7 on Friday.

wescoent · 11-02-2009, 09:00 AM

Quote:

Originally Posted by K-1

Great news. Note: this is operating profit, not driven by special items. Cost cutting FTW!

Stock is up 9% after hitting $7 on Friday.

Unless you consider C4C a one time item.

K-1 · 11-02-2009, 09:04 AM

Quote:

Originally Posted by wescoent

Unless you consider C4C a one time item.

True. You do have to wonder how many sales C4C pulled forward. I guess we'll see as Q4 rounds out.

11-02-2009, 07:24 AM	#1 (permalink)
doh 6.2 Liter LS9 Supercharged V8 Join Date: Sep 2003 Location: N.W.Ontario Posts: 5,559	Ford Posts $997m Profit, Projects Solid Income - Ford, CAW reach production pact Nov. 2 (Bloomberg) -- Ford Motor Co., the only major U.S. automaker to avoid bankruptcy, posted a $997 million net income in the third quarter and its first operating profit since early 2008. It expects to be “solidly profitable” in 2011. On an adjusted basis, Ford reported a quarterly pretax profit of $1.1 billion, or 26 cents a share, compared with a year-earlier loss of $3 billion or $1.32. Ford beat the 20-cents per share adjusted loss it was forecast to report by an average of 11 analysts surveyed by Bloomberg. Chief Executive Officer Alan Mulally, who kept Ford out of Chapter 11 as General Motors Co. and Chrysler Group LLC reorganized, is trying to extend sales momentum the Dearborn, Michigan-based automaker built by avoiding a bailout. It posted its first consecutive quarterly net profit under Mulally today. “Ford is a company that’s well into a turnaround,” said Bernie McGinn, president of McGinn Investment Management of Alexandria, Virginia, which owns about 320,000 Ford shares. “They did it by themselves and didn’t take government money. That gives people a good gut feeling and they’re being rewarded for that.” The company reported a quarterly net profit of 29 cents a share, compared with net loss of $161 million, or 7 cents, a year earlier. Ford had positive automotive cash flow of $1.3 billion compared with cash consumption of $1 billion in the second quarter. In the year earlier quarter, Ford used $7.7 billion. Ford finished the third quarter with $23.8 billion in automotive cash, up from $21 billion at the end of the second quarter. Automotive Revenue http://www.bloomberg.com/apps/news?p...6C9gLnTU&pos=1 The Canadian Auto Workers union has reached a tentative agreement with Ford Motor Co. that would ensure the company's manufacturing footprint in Canada until at least 2012. The tentative deal includes a commitment that the company's Canadian operations will manufacture 10 per cent of the vehicles Ford makes in North America. Union officials have signed off on the deal, but it must be approved by employees, who are set to vote on it over the weekend. The company currently makes roughly 13 per cent of its North American output in Canada, a percentage the union was pushing to maintain. "In the end, this was a deal breaker," CAW head Ken Lewenza said. "There had to be a footprint or there wouldn't be a deal." The company has also agreed to build a new vehicle at its Oakville, Ont., assembly plant, the union said on Friday. That plant, currently operating two shifts, manufactures the Edge and Flex Ford vehicles and the MKX and MKT Lincoln vehicles. "Production won't start during the life of this agreement," Lewenza said, "but Ford commits to a new vehicle platform for the Oakville plant." The company has also agreed a third production shift in Oakville when market conditions warrant it, Lewenza said. http://www.cbc.ca/money/story/2009/1...l.html?ref=rss Last edited by JoeT : 11-02-2009 at 08:25 AM.

11-02-2009, 07:25 AM	#2 (permalink)
doh 6.2 Liter LS9 Supercharged V8 Join Date: Sep 2003 Location: N.W.Ontario Posts: 5,559	Re: CAW Gets it; Ford, CAW reach production pact Update http://www.reuters.com/article/press...09+PRN20091101 The results by location are as follows: CAW Local 1520, St. Thomas Production: 80% in favour Skilled Trades: 81% in favour Combined total: 80% in favour CAW Local 200, Windsor Production: 81% in favour Skilled Trades: 75% in favour Combined total: 80% in favour CAW Local 707, Oakville Production: 90% in favour Skilled Trades: 91% in favour Combined total: 90% in favour CAW Local 584, Bramalea Total: 85% in favour CAW Local 240 Office: 100% in favour CAW Local 1324 Office: 83% in favour Combined Totals: Total Production: 84% in favour Total Skilled Trades: 81% in favour Total Office: 94% in favour Overall total: 83% in favour

11-02-2009, 07:38 AM	#3 (permalink)
davidlane 4.6 Liter Northstar V8 Join Date: Feb 2005 Posts: 1,594	Ford Posts $997 Million Profit, Projects Solid Income for 2011 Nov. 2 (Bloomberg) -- Ford Motor Co., the only major U.S. automaker to avoid bankruptcy, posted a $997 million net income in the third quarter and its first operating profit since early 2008. It expects to be “solidly profitable” in 2011. On an adjusted basis, Ford reported a quarterly pretax profit of $1.1 billion, or 26 cents a share, compared with a year-earlier loss of $3 billion or $1.32. Ford beat the 20-cents per share adjusted loss it was forecast to report by an average of 11 analysts surveyed by Bloomberg. Chief Executive Officer Alan Mulally, who kept Ford out of Chapter 11 as General Motors Co. and Chrysler Group LLC reorganized, is trying to extend sales momentum the Dearborn, Michigan-based automaker built by avoiding a bailout. It posted its first consecutive quarterly net profit under Mulally today. “Ford is a company that’s well into a turnaround,” said Bernie McGinn, president of McGinn Investment Management of Alexandria, Virginia, which owns about 320,000 Ford shares. “They did it by themselves and didn’t take government money. That gives people a good gut feeling and they’re being rewarded for that.” The company reported a quarterly net profit of 29 cents a share, compared with net loss of $161 million, or 7 cents, a year earlier. Ford had positive automotive cash flow of $1.3 billion compared with cash consumption of $1 billion in the second quarter. In the year earlier quarter, Ford used $7.7 billion. Ford finished the third quarter with $23.8 billion in automotive cash, up from $21 billion at the end of the second quarter. Automotive Revenue http://www.bloomberg.com/apps/news?p...6C9gLnTU&pos=1

11-02-2009, 08:13 AM	#6 (permalink)
jaydee 2.4 Liter SIDI ECOTEC Join Date: Jun 2008 Posts: 122	Re: Ford Posts $997 Million Profit, Projects Solid Income for 2011 Good for Ford, albeit coming when they're trying to get concessions from the UAW is not going to bode well for the next set of negotiations as this contract proposal appears dead in the waters. It's definitely going to be a big problem for them, but a "better" problem to have than what GM and especially Chrysler face right now.

11-02-2009, 08:38 AM	#7 (permalink)
FenwickHockey65 News Contributor Join Date: Dec 2007 Location: West Chester, OH Drives: Chevrolet Malibu LS, GMC Envoy SLE, GMC Sonoma SLS Posts: 9,309	Re: Ford Posts $997m Profit, Projects Solid Income - Ford, CAW reach production pact Good job Ford. __________________ Proud to drive American. Proud to drive GM. Current Cars: 2007 Chevrolet Malibu LS: 2.2L ECOTEC I-4 2003 GMC Envoy SLE: 4.2L Vortec 4200 I-6 1998 GMC Sonoma SLS Ext. Cab: 4.3L Vortec 4300 V6 Former Cars: 1993 Saturn SW2 (1993-2006, 243,000 miles) 1989 GMC Safari SLT (1989-2003, 293,000 miles) Future Car: 2010 Chevrolet Camaro 2LT RS: 3.6L SIDI High-Feature V6

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11-02-2009, 08:44 AM	#10 (permalink)
Quest 2.4 Liter SIDI ECOTEC Join Date: Jul 2009 Posts: 165	Re: Ford Posts $997m Profit, Projects Solid Income - Ford, CAW reach production pact FORD POSTS Q3 2009 NET INCOME OF $1 BILLION; CASH FLOW TURNS POSITIVE; NORTH AMERICA PROFITABLE •Reported net income of $997 million, or 29 cents per share, an improvement of $1.2 billion from the third quarter of 2008. Pre-tax operating profit totaled $1.1 billion, an improvement of $3.9 billion from a year ago. It is Ford’s first pre-tax operating profit since the first quarter of 2008 •Ford North America posted a pre-tax operating profit of $357 million, its first profitable quarter since the first quarter of 2005 •Reduced Automotive structural costs by $1 billion, bringing the total reduction to $4.6 billion through the first nine months of 2009, and exceeding the full-year target of $4 billion •A strong product lineup drove market share gains in North America, South America and Europe as well as continued improvements in transaction prices and margins •Ended the quarter with $23.8 billion of Automotive gross cash, up $2.8 billion from the end of second quarter 2009++ •Achieved positive Automotive operating-related cash flow of $1.3 billion for the third quarter, a $2.3 billion improvement over the second quarter •Ford Credit reported a pre-tax operating profit of $677 million, a $516 million improvement from a year ago •Ford now expects to be solidly profitable in 2011, excluding special items, with positive operating-related cash flow THIRD QUARTER HIGHLIGHTS •Ford again increased year-over-year market share in North America, South America, and Europe and continued to achieve improvements in transaction prices and margins. Ford maintained market share in the Asia Pacific Africa region and Volvo gained market share. Other sales highlights: In the U.S., third quarter market share increased 2.2 percentage points compared to last year as the Ford, Lincoln and Mercury brands all posted sales gains Ford Europe’s market share was 9.2 percent for the quarter, up 0.6 points from last year and the highest third-quarter level in 10 years. Market share was 10.1 percent in September, the highest monthly share in eight years Record growth in China continued as Ford third quarter sales jumped 63 percent At the end of the third quarter, worldwide sales of the new Ford Fiesta reached 470,000 units since its launch last fall. The No. 2 best-selling car in Europe posted its highest September sales since 1994. In September, Fiesta also had its best sales month ever in China. Fiesta arrives in the U.S. market in 2010 Began selling the new Ford Taurus and Transit Connect in North America. Taurus sales in September were up 60 percent from a year ago The Ford Focus and Ford Escape were among the top new vehicles purchased in the U.S. government’s “Cash for Clunkers” program *Ford’s U.S. hybrid sales have risen 73 percent this year compared to a 14 percent decline in U.S. hybrid industry sales. More than 60 percent of Ford Fusion hybrid sales have come from non-Ford owners http://www.ford.com/about-ford/news-...2009-net-31244 Compare and contrast with what’s been going on across the street. Ford, started much farther down than their rival. __________________ "We shall not cease from exploration And the end of all our exploring Will be to arrive where we started And know the place for the first time." -T.S. Eliot “Any rigidity by an automobile manufacturer, no matter how large or how well established, is severely penalized in the market.” -Alfred P. Sloan Jr. (1965) My Years with General Motors.

11-02-2009, 08:48 AM	#11 (permalink)
WishIhadatruck 4.6 Liter Northstar V8 Join Date: Jul 2005 Location: Grand Rapids, MI Drives: '01 Grand Prix GT '96 Roadmaster Wagon Posts: 1,793	Re: Ford Posts $997m Profit, Projects Solid Income - Ford, CAW reach production pact Great news for Ford! I'm glad they've been able to accomplish this. __________________ 1996 Buick Roadmaster Wagon 2001 Pontiac Grand Prix

11-02-2009, 08:51 AM	#12 (permalink)
poncho1982 2.8 Liter Turbocharged V6 Join Date: Mar 2006 Location: Columbus, Ohio Drives: 1995 Camaro Z28 Posts: 974	Re: Ford Posts $997m Profit, Projects Solid Income - Ford, CAW reach production pact Ah, now we see why the UAW rejected the new contract. They don't need to reduce costs, evidently. Sorry, couldn't resist. __________________ "It's starting to hit me like a ....ummmm... two ton heavy thing" Current car: 1995 Camaro Z28 Current Car #2 : 1998 Monte Carlo

11-02-2009, 08:53 AM	#13 (permalink)
K-1 4.4 Liter Supercharged Northstar Join Date: Oct 2005 Location: Ann Arbor, Michigan Drives: 2008 Saturn ASTRA 5dr XR 2009 Saturn AURA XE Posts: 2,580	Re: Ford Posts $997m Profit, Projects Solid Income - Ford, CAW reach production pact Great news. Note: this is operating profit, not driven by special items. Cost cutting FTW! Stock is up 9% after hitting $7 on Friday. __________________ 2008 Saturn ASTRA 5-door XR - Sandstone - Me 2009 Saturn AURA XE - Quicksilver - Wife 2009 Maclaren Quest Sport Stroller - Black/Champagne - Son 2008 Radio Flyer Sport Trike - Classic Red - Son 2008 Fisher-Price Power Wheels Lil' Kawasaki ATV - Green/Yellow - Son

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