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Ford Foiled by $4 Gasoline After First-Quarter Profit `Mirage'

1K views 13 replies 9 participants last post by  1931Chevy 
#1 ·
Ford Foiled by $4 Gasoline After First-Quarter Profit `Mirage'



July 23 (Bloomberg) -- Ford Motor Co.'s turnaround plan has been derailed by $4-a-gallon gasoline, dashing investor hopes raised after Chief Executive Officer Alan Mulally produced a surprise first-quarter profit.

Tomorrow he's expected to report a second-quarter loss of 25 cents a share, the average of 12 analyst estimates compiled by Bloomberg, on plunging sales of pickup trucks and sport- utility vehicles. The forecasts exclude what the world's third- biggest automaker calls one-time costs. A year earlier, Ford had a profit on that basis of $258 million, or 13 cents.

``Confidence in our plan is really increasing,'' Mulally said in an interview on April 24, after Ford reported first- quarter earnings of $100 million, or 5 cents a share. A month later, as record fuel prices hurt sales and an 82 percent increase in steel costs drove up expenses, he backed off his goal of returning to an annual profit next year.

``The first quarter came out of the blue,'' said Mirko Mikelic, a senior portfolio manager at Fifth Third Asset Management in Grand Rapids, Michigan, whose assets include Ford bonds. ``In many respects, it was a mirage.''

A loss would be the sixth in eight quarters since Dearborn, Michigan-based Ford recruited Mulally, 62, from Boeing Co. in September 2006. The automaker has lost $15.3 billion in the past two years and hasn't posted an annual profit since 2005.

Mulally declined to be interviewed for this story, Ford spokeswoman Karen Hampton said in an e-mail.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a600I6x814TA
 
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#2 ·
So, a 500 million dollar loss?

That's not bad at all, especially in light of the commodities spike and sales implosion of the F-Series and Explorer.

On the other hand, I wonder if that number includes the 2 billion from Jaguar and Land Rover...
 
#3 ·
And there are some that said that Mullaly would do a better job then Wagoner at turning his respective company around.

All he has managed to do is lose less money, which is not hard to do when you have less money to lose to begin with.
 
#4 ·
And there are some that said that Mullaly would do a better job then Wagoner at turning his respective company around.

All he has managed to do is lose less money, which is not hard to do when you have less money to lose to begin with.
Oh really?

Ford's Q1 revenue: 43.5B
GM's Q1 revenue: 42.6B

Ford's Q1 operating profit: 2.6B
GM's Q1 operating LOSS: (589)M

Ford's Q1 cash on hand: 33.8B
GM's Q1 cash on hand: 21.6B

Ford's Q1 Cash Burn: 1.5B
GM's Q1 Cash Burn: 3.2B

You tell me which company is in better shape...
 
#8 ·
"Mulally declined to be interviewed for this story"

LMAO, there is nothing to comment on here. Yeah, everyone is down worst than expected. What the heck is he gonna say? Why bother is my point, especially the day before you are expected to announce earnings.


In an unrelated story, I accused my neighbors dog of crapping on my lawn, as I shouted curse words to him as he ran away from the scene.

My neighbor declined to be interviewed. (as if he would care to)
 
#14 ·
Well Ford Automotive business debt is $26.5 billion and Ford Credit is $137.5and the adjusted debt is $120.4 and then GM Automotive sector debt its at about 34 billion so things are not too far from each other and if GMAC falls I bet GM will be force to take some of those crappy numbers back just like with the Delphi mess
 
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