Search
×

Sign up

Use your Facebook account for quick registration

OR

Create a Shvoong account from scratch

Already a Member? Sign In!
×

Sign In

Sign in using your Facebook account

OR

Not a Member? Sign up!
×

Sign up

Use your Facebook account for quick registration

OR

Sign In

Sign in using your Facebook account

Shvoong Home>Society & News>News Items>Ford Increases in the Third Quarter Net Profit 69% a Year Ago Summary

Ford Increases in the Third Quarter Net Profit 69% a Year Ago

Article Summary   by:lordbudi     Original Author: Jerry Hirsch
ª
 
The company announced a profit of 1.7 billion dollars for the period following the cost reductions and successfully new products and provides an indication that the industry continues to build muscle.

The Ford Motor Co has shown increasing strength in the U.S. auto industry Tuesday by posting a profit in the third quarter of 1700 million, which set a jump of 69% over the same period a year ago and surpassing the previous record in 1997.

The automaker - which in contrast to General Motors Co and Chrysler Group avoid bankruptcy reorganization last year - has benefited from cost reductions, are both very high quality and ultimately market share in the United States, and the sale of vehicles for higher prices.

"Overall, the results are better than we expected in the first nine months of the year," said Alan Mulally, chief executive of Ford, "and we expect a strong performance in the fourth quarter and full year to be generated."

Ford has the ratio of sales incentives in the same period decreased also buyers add options for the car and spend more, according to Edmunds.com, the automotive information company. Edmunds.com estimates that the buyer paid an average $ 30.636 for Ford in September, vaguely higher than last year and by 10% over five years.

"For too long, they weren’t really strong in the automotive market, particularly in light trucks and SUVs. Now they have good cars and the car market is where the action in recent years," Jessica Caldwell, an analyst said on Edmunds. com.

Ford's profit equaled of 43 cents per share and compared with a profit of $ 1,000,000,000, or 29 cents per share for the same period last year. He finished sixth consecutive quarter of profitable manufacturers. Revenue fell to $ 29 billion from 30.3 billion last year, before the company Volvo, the Swedish automotive industry has been sold, to concentrate on its basic Ford and Lincoln. So far this year the company earned $ 64 billion.

In early trading the shares of Ford rose 7 cents to $ 14.22.

"This was another solid quarter," said Mulally. "The most important factors for improvement in 2011 are our strength and more products, the gradual strengthening of the economy and the continuing focus is on improving the competitiveness of our actions.”

On Friday, Ford plans to use some of the money it is generating to pay the $ 3,6 million it obligated to the United Auto Workers retiree health care trust, which will save about $ 330 in annual interest payments. The car company borrowed heavily to stay afloat during the recession and is working to pay back the loans.

The payment will reduce the overall debt of the company at $ 22.8 billion, a net decrease of $ 10.8 billion at the end of 2009. Ford has said it expects its cash in the amount of total debt by the end of the year, earlier than expected. Ford is also planning a stock offering that would increase of $ 3,5 billion for the conversion of debt into common stock in the fourth quarter.

"We are well ahead of where we thought would improve our balance sheet and repay our loans," said Mulally. "This allows us to reduce the interest payments each year by over 800 million U.S. dollars."
Published: October 27, 2010   
Please Rate this Summary : 1 2 3 4 5
Translate Send Link Print
X

.