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The People at the Blue Oval Should Be Happy
Ford Posts a $1 Billion Profit, Exceptionally Good Q3 2009
This is what happens when you make surprisingly good products available at a surprisingly good price. GM and Chrysler, I hope you're taking notes.
Ford Posts a $1 Billion Profit, Exceptionally Good Q3 2009
AutoblogSurprising news comes courtesy of Ford this morning in the form of an unexpectedly good third quarter report. The Blue Oval posted $997 million in positive net income over the third quarter, which represents its first operating profit in over a year. Even better news is that Ford's success was driven in part by actual product sales, with market share increasing in North America, South America and Europe.
Ford finished the third quarter with $23.8 billion in Automotive gross cash, which is $2.8 billion better than how it finished the previous quarter. Ford Credit, the financial arm of the automaker's operations, also posted relatively good numbers in the third quarter of 2009 with an after-tax profit of $427 million. Though Ford is selling fewer vehicles overall from the heyday of the early 2000s, its off-lease models aren't depreciating as rapidly as before and are selling for higher transaction prices at auction.
While making nearly a billion dollars in the third quarter of 2009 is welcome news, the automaker still has a tough road ahead in the coming years. In recognition of this fact, Ford isn't predicting solid profitability and consistently positive operating cash flow until 2011.
This is what happens when you make surprisingly good products available at a surprisingly good price. GM and Chrysler, I hope you're taking notes.