Ford Posts Quarterly Profit

Ford, which is America’s number two carmaker, saw sales growing at almost double the overall pace of the industry.

The company said it was also on track to remain profitable in 2010.

Revenues Up
In the three months to the end of June, Ford’s revenue rose to $31.3 billion, up $4.5 billion from a year earlier.

Excluding Volvo revenue from 2009, Ford’s revenue in the second quarter was up $7.4 billion compared to 2009, or over 30 percent.

Automotive operating-related cash flow was positive $2.6 billion during the second quarter, primarily reflecting pre-tax operating profits and favorable changes in working capital.

Car sales in the first six months of 2010 rose 28 percent.

Simple Plan for Success
More than four years into its turnaround plan, Ford has not only exceeded many of its own goals, it is now breaking through as a global industry leader - especially on image and quality.

Ford’s CEO Alan Mulally said in a release that it was a “very strong second quarter... and we are ahead of where we thought we would be despite the still-challenging business conditions.

“We remain on track to deliver solid profits and positive Automotive operating-related cash flow for 2010, and we expect even better financial results in 2011.

“Our progress is being led by the strength of our new products and our leaner, global structure,” Mulally added. “Customers are responding to our strongest ever product lineup – a full family of vehicles with world-class quality, fuel efficiency, safety, smart design and value.”

Lewis Booth, Ford Executive Vice President and CFO added: “Our fundamental business is strong and we continue to gain momentum around the world.

“Profits improved across our global business operations in the second quarter and we made continued progress in paying down our debt and strengthening our balance sheet.”

SOURCE: Ford

Edited by Ellie Duncan