Ford Posts 3Q09 Profit
Ford Motor Companies, the only major American automobile company to adequately prepare for a future where fewer cars are manufactured, and the only one not to receive signficant government handouts in the past year, posted a proft last quarter.
Ford Motor Co (NYSE:F – News) posted a quarterly profit on Monday, defying Wall Street forecasts for a loss as it cut costs and gained market share, leading it to raise its 2011 outlook to “solidly profitable” from break-even.
Ford’s shares surged over 9 percent as the surprising profit and increased outlook overshadowed an expected announcement later Monday that the United Auto Workers union has rejected a tentative cost-cutting deal with the automaker.
The results provided more evidence that Ford has distanced itself from U.S. rivals General Motors Co (GM.UL) and Chrysler, which have struggled to complete restructurings after emerging from government-funded bankruptcies earlier in 2009.
Ford seized North American market share from GM and Chrysler when they halted most production to prepare and execute their bankruptcy cases.
No doubt some of this profit was fueled by the time-shifted purchases produced by Cash For Clunkers. Nevertheless, I am happy to see this, as I was worried that government financial backing of GM and Chrysler might end up with the Feds giving them an advantage over Ford. I’m pleased to see that that hasn’t happened. (Frankly, government interference in the operations of GM and Chrysler to date has been surprisingly restrained, all things considered.)
Frankly, of the Big 3 automakers, Ford is the only company that I considered buying a car from in the past decade. They make good cars and they’re much better managed than the other two. I’m curious to see if they can sustain a profit into the first half of 2010, though.