First Quarter Profit Figures for the Ford Motor Company

The Ford Motor Company has released first quarter financial reports that show more than two billion dollars worth of earnings. In comparison, one year ago, the American auto giant reported a loss of nearly the same amount. Ford representatives claim that their efforts have paid off to develop a solidly profitable beginning, and hopefully and, to 2010. Alan Mulally, Ford's ceo, stated last week, "The basic engine that drives our business results products, market share, revenue, and cost structure is performing stronger each quarter." Not all analysts are fully convinced just yet though. Stephen Spivey, Frost Sullivan senior industry analyst, offered, "I suspect shares in the auto sector are done rebounding for a while. The problem for Ford may not be the earnings statement so much as the balance sheet."

Ford's earnings exceeded projected values for the first quarter of 2010, but Spivey still urges patients and caution. He continued, "While we are pleased with our momentum, the business environment remains challenging. Even as we see positive signs emerging in the global economy, the recovery is fragile." He also made it clear that Ford was only able to avoid bankruptcy, like those filed by both Chrysler and GM, because of the highly leveraged position that it enjoyed from selling assets in 2006. Still, the fact remains that Ford has profited $2.1 billion, recovering in powerful style from the $1.4 billion loss of 12 months ago.

Facts about first quarter, 2010 Ford profits
(compared to 12 months ago):

• Revenue = $31.6 billion (up from $24.4 billion);
• Profit = $2.1 billion (up from a $1.4 billion loss);
• Per share profit = 46 cents;
• Ford's largest market share gain in a single quarter since 1977;
• Market analysts predicted $28.5 billion in total revenue and 32 cents/share profit;
• New models of the Focus and the Fusion helped to shoot March sales up by 40%;
• Ford has achieved market share gains 17 of the last 18 months;

Headquartered in Dearborn, Michigan, Ford looks forward to a "solidly profitable" year. The highly appreciable profits gained by Ford in Q1, 2010 are certainly encouraging. Mulally said further, "Each of our Ford business units North America, South America, Europe, Asia Pacific and Africa, and Ford Credit delivered operating profits; and each improved substantially compared with a year ago." Analyst including Spivey are also quick to point out that other factors including the Toyota recalls, government incentive programs and more have acted to increase sales for all of the Big 3 American automakers. Ford Motor Credit Co. CEO Chairman Mike Bannister concludes, "Economic conditions are still uncertain and, as always, we will utilize the solid business practices and superior servicing that remain the foundations of our company."