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Automotive Industry
AUTO: $1 Billion Net Profit Posted By Ford
Strong progress in third quarter were boosted by solid lineup of new products, CEO Alan Mulally says.
Bob Golfen  |  Posted November 02, 2009   Dearborn, MI
Ford President and CEO Alan Mulally expects the automaker to be "solidly profitable" by 2011. (Photo: Ford)
Ford Motor Co. posted a strong $997 million net profit today for the third quarter, a $1.2 billion improvement compared with last year and the automaker’s first operating profit since the first quarter of 2008.

“Our third quarter results clearly show that Ford is making tremendous progress despite the prolonged slump in the global economy,” said Alan Mulally, Ford president and CEO. “Our solid product lineup is leading the way in all markets.”

Ford’s North American operations posted a pre-tax operating profit of $357 million, its first quarterly profit since the first quarter of 2005. Ford South America, Ford Europe and Ford Asia Pacific Africa also posted pre-tax operating profits in the third quarter.

Ford attributes the strong showing to reduced structural costs, improved sales of new products and better profits for its credit arm. Ford Motor Credit Company reported net income of $427 million in the third quarter of 2009, an increase of $332 million from earnings of $95 million a year earlier.

The Cash for Clunkers program helped boost sales in July and August.

Mulally predicted that Ford would be "solidly profitable" in 2011, a more-positive spin than Ford’s early assertion that 2011 would be a break-even year.

“The third quarter is one the entire Ford extended team can be proud of because it proves that our product-led transformation is working,” Mulally said. “Leading indicators are now showing signs of recovery in all of our major markets, however, consumer confidence and labor market conditions remain a concern.”

Ford’s good news about profits was tempered by the rejection today of contract changes by the United Auto Workers, who overwhelmingly voted down concessions Ford says it needs to remain competitive. Canadian auto workers Sunday accepted the cuts.

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