Ford's third-quarter profit: $1.69 billion
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Ford's third-quarter profit: $1.69 billion
www.freep.com
Ford today said it earned $1.69 billion, or 43 cents per share, for the July-September period -- its largest third quarter profit since 1990.
The Dearborn automaker also said it used $2 billion in cash to pay off debt in September and will reduce its debt by a total of $5.6 billion by this Friday when it makes a cash payment to the UAW’s retiree health care trust fund, known as a Voluntary Employee Beneficiary Association. With that payment, Ford will have met all of obligations to the VEBA, which was established in labor talks with the UAW in 2007.
Excluding special charges, Ford reported earnings of 48 cents per share, or 10 cents more than the average estimate forecasted by analysts reporting to Thomson One Analytics.
Ford CFO Lewis Booth said Ford’s performance is improving because the company is gaining market share in the U.S. and it is increasingly able to sell its cars and trucks for higher prices.
“What we are seeing is as we launch our new products, we are closing the transaction gap that we have with our Asian competitors,” Ford CFO Lewis Booth said today.
Through September, the second-largest U.S. automaker’s share of U.S. industry sales was 16.7%, or 1.5 points higher than it was for the same period last year, according to Autodata.
With year-to-date profits of about $6.29 billion, Booth said Ford has already delivered on its earlier promise for a solid profit for 2010.
Remainder of the article available at the link above
The Dearborn automaker also said it used $2 billion in cash to pay off debt in September and will reduce its debt by a total of $5.6 billion by this Friday when it makes a cash payment to the UAW’s retiree health care trust fund, known as a Voluntary Employee Beneficiary Association. With that payment, Ford will have met all of obligations to the VEBA, which was established in labor talks with the UAW in 2007.
Excluding special charges, Ford reported earnings of 48 cents per share, or 10 cents more than the average estimate forecasted by analysts reporting to Thomson One Analytics.
Ford CFO Lewis Booth said Ford’s performance is improving because the company is gaining market share in the U.S. and it is increasingly able to sell its cars and trucks for higher prices.
“What we are seeing is as we launch our new products, we are closing the transaction gap that we have with our Asian competitors,” Ford CFO Lewis Booth said today.
Through September, the second-largest U.S. automaker’s share of U.S. industry sales was 16.7%, or 1.5 points higher than it was for the same period last year, according to Autodata.
With year-to-date profits of about $6.29 billion, Booth said Ford has already delivered on its earlier promise for a solid profit for 2010.
Remainder of the article available at the link above
Mach 1 Member
Joined: July 22, 2007
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From: "SW" Iowa
Ouch!
I remember back in late 2008 a friend who was a manager at my Ford dealership said you might want to consider buying a few hundred shares of Ford right now, it is really going to grow (this when they were at around $2 a share).
I said Na. Really can't trust the market now with a new prez and all. That boys and girls is what is called a lost opportunity!! And also why I never have to worry about being rich!!
CalStang
I said Na. Really can't trust the market now with a new prez and all. That boys and girls is what is called a lost opportunity!! And also why I never have to worry about being rich!!
CalStang
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Joined: December 14, 2007
Posts: 19,953
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From: State of Jefferson Mountains USA
I remember back in late 2008 a friend who was a manager at my Ford dealership said you might want to consider buying a few hundred shares of Ford right now, it is really going to grow (this when they were at around $2 a share).
I said Na. Really can't trust the market now with a new prez and all. That boys and girls is what is called a lost opportunity!! And also why I never have to worry about being rich!! CalStang
I said Na. Really can't trust the market now with a new prez and all. That boys and girls is what is called a lost opportunity!! And also why I never have to worry about being rich!!
CalStangOne should never invest in high risk assets unless they are prepared & able to lose it. And regardless how high it goes, 200sh won't make anyone wealthy.
They announced today their plan to pay off debt. Some analysts wrote that seems foolish because you can lock in long term rates at all time lows and hold your cash.
My hunch is its a ploy to refinance their current higher interest loans in a two step process. Pay it off from cash reserves so the balance sheet looks great, the rating agencies bump you to investment grade bonds (better rates compared to junk rated bonds), then when the dust settles issue new long term bonds at low rates and put the cash raised back into your liquidity bucket.
If they don't do that, then next time they needs funds they'll issue new shares in a secondary offering - which is dilutive and hurts existing shareholders. So I'd rather see them carry debt at low investment grade long term rates. Plus when the Fed's inflation hits, you are paying those loans off with cheaper and cheaper dollars over time. I am not afraid of cheap debt - its an asset allocation tool as well as an inflation hedge to a certain extent.
IMO
Last edited by cdynaco; Oct 27, 2010 at 03:54 PM.
Mach 1 Member
Joined: August 19, 2006
Posts: 610
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I made the mistake of posting this at a Gm truck forum and was attacked by teenagers. 
http://www.gm-trucks.com/forums/inde...owtopic=121368
Its ok to be brand loyal but these guys defy logic. I have been critical of the F150 powertrains and Mustang Powertrains in the past myself. Now that Ford has new engines in the F series they cant take it. The 5 liter is a great engine and even the 3.7 is a fantastic engine in both the Mustangs and F 150 trucks. I own a GMC truck with a 4.3 boat anchor so I can speak from experience. Its a good engine that time has passed by. Everything on my truck has fallen apart around the engine 3 times.
Feel free to add your two cents if you want. I have been labled a troll over there.
I was just posting facts but it does get frustrating.
http://www.gm-trucks.com/forums/inde...owtopic=121368
Its ok to be brand loyal but these guys defy logic. I have been critical of the F150 powertrains and Mustang Powertrains in the past myself. Now that Ford has new engines in the F series they cant take it. The 5 liter is a great engine and even the 3.7 is a fantastic engine in both the Mustangs and F 150 trucks. I own a GMC truck with a 4.3 boat anchor so I can speak from experience. Its a good engine that time has passed by. Everything on my truck has fallen apart around the engine 3 times.
Feel free to add your two cents if you want. I have been labled a troll over there.
I was just posting facts but it does get frustrating.
TMS Post # 1,000,000
Serbian Steamer
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Joined: January 30, 2004
Posts: 12,636
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From: Wisconsin / Serbia
I made the mistake of posting this at a Gm truck forum and was attacked by teenagers.
http://www.gm-trucks.com/forums/inde...owtopic=121368
Its ok to be brand loyal but these guys defy logic. I have been critical of the F150 powertrains and Mustang Powertrains in the past myself. Now that Ford has new engines in the F series they cant take it. The 5 liter is a great engine and even the 3.7 is a fantastic engine in both the Mustangs and F 150 trucks. I own a GMC truck with a 4.3 boat anchor so I can speak from experience. Its a good engine that time has passed by. Everything on my truck has fallen apart around the engine 3 times.
Feel free to add your two cents if you want. I have been labled a troll over there. I was just posting facts but it does get frustrating.
http://www.gm-trucks.com/forums/inde...owtopic=121368
Its ok to be brand loyal but these guys defy logic. I have been critical of the F150 powertrains and Mustang Powertrains in the past myself. Now that Ford has new engines in the F series they cant take it. The 5 liter is a great engine and even the 3.7 is a fantastic engine in both the Mustangs and F 150 trucks. I own a GMC truck with a 4.3 boat anchor so I can speak from experience. Its a good engine that time has passed by. Everything on my truck has fallen apart around the engine 3 times.
Feel free to add your two cents if you want. I have been labled a troll over there.
I was just posting facts but it does get frustrating.
EDIT: I actually read few posts on that site ... is anyone there older than 15? If they are - it's pretty sad.
Last edited by Zastava_101; Oct 30, 2010 at 02:13 PM.
Mach 1 Member
Joined: August 19, 2006
Posts: 610
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It does I guess. Fords only weakness has been fixed. The 5 liter will absolutely wax a 5.3 Chebby. Heck, the 3.7 holds its own. The thinking is the EB 3.5 is a ticking time bomb and wont last. I bet they are wrong on this one. Ford knows what they are doing. They are coming to market with some strong offerings. I dont know how you can not be impressed with Mulally and this company. Mulally is a nothing short of a wizard. I would love to work for somebody like him.
Tasca Super Boss 429 Member
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