The economic outlook for the Ford Motor Co. has CEO Alan Mulally smiling, writes Automotive News. On Jan. 28, experts predict that Ford Motors will reveal numbers that prove that 2010 was the company’s most profitable year since 2000. Not only that, but it would be the second straight lucrative year under Mulally.
Ford has a ‘money machine’ making 48-cents per share
A Thomas Reuters survey was done on the Ford Motor's fourth quarter $30.57 billion revenue. Before taxes, that is 48 cents per share profit. With that rate of gains, the fourth quarter earnings would be about $1.7 billion. That's pretty good. For the entirety of 2010, Ford’s revenue would then total $8 billion, a fine showing after an equally fine first three quarters at $6.37 billion in net income, the company’s best total for the opening three quarters of a year since 1998
Automotive News accounts that a profit of $2.72 billion was what the annual net profit was in 2009 for Ford Motors which came from total revenue of $118.31 billion. The company is doing well due to Ford car quality, Mulally explained. J.D. Power & Associates ranked Ford Motors among the best mass-market brands recently. Ford ranked fifth behind luxury brand Porsche overall in the J.D. Power survey.
"Ford is building better cars since (Mulally) came in," said fund manager Gary Bradshaw of Dallas-based Hodges Capital Management, which owns 100,000 common and 100,000 preferred shares of Ford stock. "He’s just making this company a money machine."
Ford Motors never took Troubled Asset Relief Program funds
One aspect of Ford’s recent success is consumer confidence, bolstered by the truth that the automaker didn’t accept TARP cash like General Motors and Chrysler. In 2006, Ford leveraged assets for $23 billion in private loans with "the world's largest home-equity loan" according to Mulally. While the automaker is dealing with that debt in good stead, that hasn’t kept car-buying consumers away.
Articles cited
Auto News
autonews.com/apps/pbcs.dll/article?AID=/20110127/OEM01/110129870/1254
CEO Alan Mulally on Ford’s direction in 2011
youtube.com/watch?v=3gRerDw4q0s
No comments:
Post a Comment