Ford Numbers Beat Wall Street Expectations
|Topics: Ford Motor Company
July 30, 2010
Ford has surprised Wall Street after reporting a $2.6 billion profit in the second-quarter of the year, earning shareholders 61 cents per share, which beats the forecast 40 cents. Ford's American sales climbed 28 per cent since the beginning of the year, almost doubling that of its competitors. However, Ford has forecast a decline in sales to go hand-in-hand with the predicted weak economy as well as the rising cost of aluminium, along with its seasonal plant closures.
Ford President and Chief Executive Officer Alan Mulally,said in a conference call with analysts and media, "Overall, our performance this year gives us great confidence going forward." Ford is convinced that the company is making more money due to the global auto-structure where vehicles from around the world share parts. Even though sales in western Europe were down, sales were up significantly in other parts of the world such as Brazil, India, the United States and China.
Mulally also notes, "The global business environment remains challenging, but we expect global growth to continue." U.S. sales remain low due to economic uncertainty, which is why Ford has lowered its total forecast sales for the year by half a million cars and trucks. They are predicting sales of 11.5 to 12 million for the year. However, shares have remained in good standing, getting a recent boost of 41 cents, up to $12.50 during the early morning of July 23, from fast-paced sales of their F-150 pickup truck and the Ford Fusion Sedan.
Ford has closed the second quarter owning 17.2 per cent of the U.S. market, which is an increase from 16.9 per cent they were at during the end of the first quarter. The second quarter also saw them pay of $7 billion in debt and earn $2.6 billion, increasing shares by 61 cents each. Ford continues to work hard to pay down its debt.
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