Ford posts $997 million Q3 net profit, boosts cash
Ford Motor Co. posted a surprise net profit of $997 million in the third quarter and its cash position turned positive, reversing a long stretch of cash burn.
Ford's pre-tax operating profit of $1.1 billion for the quarter marked its first quarter in the black on that basis since early 2008. The automaker ended the quarter with $23.8 billion in cash, up $2.8 billion from the end of the second quarter.
Its North American unit posted a pre-tax operating profit of $357 million, for its first positive quarter since the first three months of 2005.
Ford attributed the improved performance to new products, reduced structural costs and improved results at Ford Credit. The automaker recorded U.S. sales increases in July and August, aided by the cash-for-clunkers program, and lifted its market share for the quarter.
"Our third-quarter results clearly show that Ford is making tremendous progress despite the prolonged slump in the global economy," said Ford CEO Alan Mulally.
Ford, which had said it would hit "break-even or better" in 2011, said it now predicts the company will be "solidly profitable" that year on a pre-tax basis, not including special items. Ford will have positive automotive operating-related cash flow that year, the automaker said.
Revenue in the third quarter fell to $30.9 billion from $31.7 billion a year earlier.
Source: Ford posts $997 million Q3 net profit, boosts cash
Ford's pre-tax operating profit of $1.1 billion for the quarter marked its first quarter in the black on that basis since early 2008. The automaker ended the quarter with $23.8 billion in cash, up $2.8 billion from the end of the second quarter.
Its North American unit posted a pre-tax operating profit of $357 million, for its first positive quarter since the first three months of 2005.
Ford attributed the improved performance to new products, reduced structural costs and improved results at Ford Credit. The automaker recorded U.S. sales increases in July and August, aided by the cash-for-clunkers program, and lifted its market share for the quarter.
"Our third-quarter results clearly show that Ford is making tremendous progress despite the prolonged slump in the global economy," said Ford CEO Alan Mulally.
Ford, which had said it would hit "break-even or better" in 2011, said it now predicts the company will be "solidly profitable" that year on a pre-tax basis, not including special items. Ford will have positive automotive operating-related cash flow that year, the automaker said.
Revenue in the third quarter fell to $30.9 billion from $31.7 billion a year earlier.
Source: Ford posts $997 million Q3 net profit, boosts cash
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