Ford reports $1 billion third-quarter profit
Published: November 2, 2009
DEARBORN, Mich. -- Ford Motor Co. earned $1 billion in the third quarter, fueled by U.S. market share gains, cost cuts and the government's Cash for Clunkers rebates.
The Dearborn, Mich.-based automaker today reported net income of $997 million, or 29 cents per share. Ford says it now expects to be "solidly profitable" in 2011. Previously the automaker said it would be break-even or better.
Ford's shares rose 50 cents, or 7.1 percent, to $7.50 in pre-market trading.
The latest results signal that Ford's turnaround is on more solid ground. The company lost more than $14.6 billion in 2008 and hasn't posted a full-year profit since 2005. While it made a profit in the second quarter, that was mainly due to debt reductions that cut its interest payments.
Ford's North American car and truck division -- its key business -- posted a pretax profit of $357 million, its first quarter in the black since early 2005. Ford cited higher pricing, lower material costs and increased market share for the improvement.
The earnings came despite an $800 million revenue drop. But Ford said it cut costs by $1 billion during the quarter.
Ford still faces obstacles in its turnaround. Last week, workers overwhelmingly rejected an agreement with the United Auto Workers that would have brought Ford's labor costs in line with rivals General Motors Corp. and Chrysler LLC. Workers objected to clauses limiting their right to strike and freezing entry-level wages, and also felt the company was healthy enough and didn't need further concessions.
-- The Associated Press
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Between 2000 and 2008, the United Auto Workers (UAW) union gave $23,675,562 to the Democratic Party and its candidates.
In 2008 alone, the UAW gave $4,161,567 to the Democratic Party, including Barack Obama.
In return, the UAW received 55 percent of Chrysler and 17.5 percent of GM, plus billions of dollars.
The Obama Treasury Department strong-armed Chrysler’s creditors into a deal in which the UAW was given 55 percent ownership of the company while Chrysler’s secured creditors – investors who would have received priority in a non-political bankruptcy proceeding – were left with just 29 cents on the dollar.
And nobody’s calling this a scandal?
It was about saving jobs. Only Big Union jobs.
drHoagie-
GM is worth saving because for every manufacturing job, there are 10 jobs throughout the whole chain of suppliers that also serve Ford and Chrysler; thus, a GM failure could mean the collapse of the entire auto industry. Are you aware of that FACT? It is not as simple as you make it seem. GM has a facility in Fredericksburg and another supplier in Emporia, and Louisa. If GM fails, potentially one of your neighbors might be out of work.
Obama confiscated 2 of the 3 US automakers from private business and gave away a huge stake in ownership to his political contributors (UAW-labor union). GM and Chrysler, since Obama’s hostile takeover, both had sales drops of over 60%. Prove positive America continues to turn on Obama and his failed policies.
Ford, who remain privately owned, had a sales drop of only 4%. Pretty impressive in this economy.
Everything Obama touches turns to do-do.
Next up: Health Care.
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