Leading US automaker Ford said on July 24 it saw a 13 percent net profit jump to 2.6 billion dollars in the second quarter of 2010 on strong sales. "We delivered a very strong second quarter and first half of 2010 and are ahead of where we thought we would be despite the still-challenging business conditions," said Ford President and CEO Alan Mulally.
The results were better than had been forecast for the Dearborn, Michigan-based company, the only US automaker that did not seek government assistance during the height of the economic crisis.
"We remain on track to deliver solid profits and positive automotive operating-related cash flow for 2010, and we expect even better financial results in 2011," Mulally said in a statement announcing the results. The company said it gained 61 cents a share, a 338-million-dollar improvement from the same period a year ago, and higher than the 40-cent jump predicted by analysts.
It was the fifth consecutive quarter of gains for Ford, which avoided the bailouts required to prop up rivals Chrysler and GM, but undertook painful restructuring to remain profitable.
High oil prices and an economic crisis forced auto firms to slash tens of thousands of jobs, shutter scores of factories and eliminate or sell storied brands as they struggled to deal with a decades-long loss of market share, mainly to Asian rivals.
Ford's second quarter revenue was 31.3 billion dollars, up 4.5 billion dollars from a year earlier and also better than the 29.79 billion dollar figure expected by observers. "Our fundamental business is strong and we continue to gain momentum around the world," said Lewis Booth, Ford executive vice president and chief financial officer.
"Profits improved across our global business operations in the second quarter and we made continued progress in paying down our debt and strengthening our balance sheet."
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