Friday, July 24, 2009

"Building Cars Nobody Wants To Buy..." Ford Posts $2.3B 2Q Profit - Beats Estimates

"The One" has killed 2 of the 3, but FoMoCo is still standing.

And what's this? Profiting?

No Way.

This must not stand!

Not long after Ford tells the government to Pound Sand the boys in the Glass House pull one out for the Dirty D - what next?

Lions in the Superbowl?


The auto maker reported a net income of $2.3 billion or 69 cents a share, compared with a loss of $8.67 billion, or $3.89 a share for the same period a year earlier.

The company refused U.S. federal aid and filing for bankruptcy, which may have created consumer goodwill but has allowed Chrysler Group LLC to merge with Fiat SpA (FIATY) and General Motors Co. to dump about $40 billion in debt.

Precarious is Ford's financial position and for them to be the come back kid, to succeed IN SPITE OF THE OBAMA PLAN, they will need to scratch and scrap for every penny - especially with Canada and the Unions supporting one of their primary competitors, GM.

Sales and Selling...Earth and Water..that's what it's all about..

Full article here.




Reactions:

4 comments:

  1. The Recession is Over too!!
    You didn't hear?
    http://www.cp24.com/servlet/an/local/CTVNews/20090723/090723_economy/20090723/?hub=CP24Home

    It a bold statement, isnt a recession, 3 bad quarters? and to be out, there would have to be 3 good ones?
    I believe we only had one good one, and its the one we are in now!!

    Its still a welcome headline.

    If things keep going this was we will be out of a technical recession.

    What I got from the article was that the economy is "as if" there is no recession because there is growth.

    Odd choices of words but great to see where we are now in Canada withpositive numbers to show some light at the end of the tunnel.

    Ford: Consumer confidence must have stayed high for Ford since they never appeared weak and got a handout!

    I see many new Fords on the road these days!

    I like all this good news, lets just keep it up as sales people,consumers(still great deals right now!), as regulators, as positive people!!!!!

    ReplyDelete
  2. Hey Doug -

    Yeah, if you read into the Ford/WSJ article, the news was good for Ford, but still bad.

    This looks like a one time boost - they are still losing money all over the world.

    But speaking of a recovery, the Dow approaching 10k?

    I still do not know what a "jobless recovery" is actually - going to need to wait on that...

    Thanks for commenting and reading.

    ReplyDelete
  3. The Ford profitablity this quarter came from a debt restructuring in April. It was a one time thing. Without the restructuring they would have still lost over $400 million for the quarter. Granted that is better than the over $1 billion they lost at this time last year, but I would not use it as proof that Ford is strong.

    http://online.wsj.com/article/BT-CO-20090723-713287.html

    BTW - a jobless recovery is a term first coined after the brief recession of 2002. Typically companies hire as the economy comes out of recession, but with increases in productivity and the general corporate feeling that labor is expendable, companies just pushed the fewer remaining workers harder. We are still seeing that as companies push their workers to work longer for less pay under threat of being "downsized." Why hire new workers when the old ones are just glad to have a job and will do most anything to keep it. As a result, corporate profits go up, the "recession" ends and unemployment stays high keeping wages down. It's win/win for the corporations and bad news for the average American.

    ReplyDelete
  4. Jon -

    Yeah, it's a one time but I am still rooting for FoMoCo.

    And I understand the whole "jobless..." thing as well.

    Labor is just another resource - always has been.

    Thanks for you comment, keep coming back.

    ReplyDelete