DETROIT – Ford Motor Co. posted a fourth-quarter profit and swung to its first full-year profit since 2005. Catching analyst by surprise as Ford showed continued progress in spite of the worst automotive sales years in nearly three decades.
Ford reported fourth-quarter net income of $868 million compared with a loss of $5.9 billion a year earlier. Revenue rose to $35.4 billion from $29 billion. Ford snapped a three-year streak of losses by recording a net profit of $2.7 billion for 2009 compared with a loss of $14.8 billion in 2008. Ford’s operating profit, after taxes, for the fourth quarter was $1.6 billion compared with a loss of $3.3 billion a year ago. For the year, Ford’s operating profit was $8 million compared with a loss of $7.3 billion a year earlier. Ford posted losses totaling $30 billion from 2006 through 2008.
Ford’s results come as rival Toyota Motor Corp. is mired in a crisis over faulty accelerator pedals that have led to a massive recall of top-selling vehicles and the temporary suspension of production and sales. Ford shares have reflected a surge in investor expectations. The stock has jumped sixfold in a year from under $2 to nearly $12 today.
The automaker borrowed more than $23 billion in late 2006, two months after Mulally joined Ford from Boeing Co., to finance restructuring plans in what the CEO often refers to as Ford’s “home improvement loan.”
Via: Automotive News
No comments:
Post a Comment