Ford posts a profit in Q3

posted at 9:30 am on November 2, 2009 by Ed Morrissey

Analysts expected Ford to take a 20-cent per share loss in the third quarter.  Instead, the automaker beat that by 46 cents, posting its first quarterly profit in over a year, and making believers on Wall Street:

Ford Motor Co., the only major U.S. automaker to avoid bankruptcy, posted a $997 million net income in the third quarter and its first operating profit since early 2008. It expects to be “solidly profitable” in 2011.

On an adjusted basis, Ford reported a quarterly pretax profit of $1.1 billion, or 26 cents a share, compared with a year-earlier loss of $3 billion or $1.32. Ford beat the 20-cents per share adjusted loss it was forecast to report by an average of 11 analysts surveyed by Bloomberg. …

“Ford is a company that’s well into a turnaround,” said Bernie McGinn, president of McGinn Investment Management of Alexandria, Virginia, which owns about 320,000 Ford shares. “They did it by themselves and didn’t take government money. That gives people a good gut feeling and they’re being rewarded for that.”

While GM and Chrysler struggle, Ford has built a new reputation for independence and competence.  The efforts of its management to steer a course away from taxpayer bailouts has generated a lot of goodwill — perhaps not in Detroit itself or with the unions, but with consumers angry at the corporate welfare policies of this administration and its predecessor.  That goodwill will translate to better sales, assuming that Ford can overcome its competitive disadvantage on labor costs, an effort that will officially fail this week on their first attempt.

However, Ford has to wonder whether they face a disadvantage at all.  For the first time in 80 years, they bested GM in market share, and GM has had to pare back its offerings significantly as a result of their collapse.  GM’s credit group GMAC needs another big bailout, which may or may not be forthcoming — and without it, they’re going to sell fewer cars.  Chrysler hardly even exists at the moment, with or without the bailouts, and looks as though it may fade away at any moment.

Ford has found a formula for success: self-sufficiency, or at least enough of it to differentiate themselves from their domestic competition.


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Comment pages: 1 2

I do hope Ford can keep their profits strictly for growth, debt retirement, cash reserves and shareholders. Meaning, since the unions didn’t want to re-negotiate, screw any idea of profit sharing.

TubbyHubby on November 2, 2009 at 11:52 AM

My next new car will be a Ford. If they can break free of the UAW and become a truly free enterprise, I’ll buy two.

joe_doufu on November 2, 2009 at 12:24 PM

Ford posts a profit in Q3
The efforts of its management to steer a course away from taxpayer bailouts has generated a lot of goodwill — perhaps not in Detroit itself or with the unions, but with consumers angry at the corporate welfare policies of this administration and its predecessor.

Take That Paulson/Geitner/Bernanke/Obama/Bush/Greenspan/Cox/Raines/Pilosi/Frank et.al. !!!

You are all frauds and have proven your irrelevance. Now go away forever!!

nolapol on November 2, 2009 at 12:36 PM

Ford needs to tell the UAW, “You want to work, or do you want funemployment?”

GarandFan on November 2, 2009 at 12:55 PM

O’Bambi will be seething with rage at this news.
honsy on November 2, 2009 at 9:35 AM

Well, I should say at the outset that Skip Gates is a friend Chrysler and GM are my homies, so I may be a little biased here. I don’t know all the facts.

What’s been reported though is that the guy forgot his keys, jimmied his way to get into the house Ford forgot its place and scammed its way to a profit. There was a report called in to the police station Whine House that there might be a burglary failure to spread wealth around taking place. So far, so good, right? I mean, if I was trying to jigger into take over — well, I guess this is my house economy now, so…

(LAUGHTER)

… it probably wouldn’t happen. But let’s say my old house in Chicago one-sixth of the economy.

(LAUGHTER)

Here, I’d get shot undying, ceaseless adoration.

(LAUGHTER)

But so far, so good. They’re — they’re reporting. The police are doing what they should Ford is dissing me. There’s a call profit. They go investigate what happens are proud of this outcome.

My understanding is, at that point, Professor Gates is already in his house Chrysler and GM had opted in and became my homies. The police officer comes in Ford has opted out. I’m sure there’s some exchange of words reversal of market share. But my understanding is, is that Professor Gates the UAW then shows his I.D. voted down a new contract with Ford to show that this is his house they’re next and, at that point, he gets arrested for disorderly conduct, charges which are later dropped the UAW is left holding the bag with my homies and they’re looking for more bailouts and economic justice.

Now, I don’t know, not having been there and not seeing all the facts, what role race filthy unjust profiteering played in that. But I think it’s fair to say, number one, any of us would be pretty angry; number two, that the Cambridge police Ford acted stupidly in arresting somebody when there was already proof that they were in their own home attaining a profit when my two homies failed to; and, number three, what I think we know separate and apart from this incident is that there’s a long history in this country of African-Americans and Latinos being stopped by law enforcement disproportionately private enterprises failing to hand over their loot willingly. That’s just a fact.

ya2daup on November 2, 2009 at 1:09 PM

Ford has got some nerve

Sonosam on November 2, 2009 at 1:14 PM

Ford needs someone like Henry Clay Frick to put the UAW in their place.

PimFortuynsGhost on November 2, 2009 at 1:17 PM

And to clarify my point–I would not be opposed to seeing Gettlefinger emulating August Spiess.

PimFortuynsGhost on November 2, 2009 at 1:31 PM

I can see the UAW striking against Ford in 4….3…2…

Seven Percent Solution on November 2, 2009 at 5:18 PM

Let the UAW strike against Ford. Unemployment is so bad in rust-belt regions that I have no doubt whatsoever that the company could replace the strikers and fire them outright.

Eat sh!t and die, UAW…!

Wanderlust on November 2, 2009 at 7:52 PM

I’m all for Ford, but doubtful that this profit will continue in Q4 without the Cash for Clunkers boondoggle.

Livefreeordie on November 2, 2009 at 8:18 PM

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