Ford posts first profit since 2007
Ford Motor Co. posted a quarterly profit of $1 billion for the third quarter and reported a positive cash flow of $1.3 billion.
Photo by Tim Bishop
File photo: Alan Mulally, CEO and President The Ford Motor Company giving a press conference at the Paris Motor Show 2008
Ford was the only U.S automaker to avoid bankruptcy in 2009 and their decision to forgo government bailout money is paying off. Increased market share and cost cuts were major factors for the quarterly profit as revenue fell by $800 million to $30.9 billion.
“Our third quarter results clearly show that Ford is making tremendous progress despite the prolonged slump in the global economy,” Ford President and CEO Alan Mulally said in a
news release. “Our solid product lineup is leading the way in all markets. While we still face a challenging road ahead, our One Ford transformation plan is working and our underlying business continues to grow stronger.”
However, Ford is still saddled with a heavy debt load that could hinder the company's prospects for future growth.
The third quarter profit gives Ford hope the economy will have recovered by 2011, the year in which Ford originally expected to break even in.
The news boosted the company's stock price up 5.7 percent in premarket trading.
