The rumors were true: Ford Motor Company (F) has just published financials from the third quarter of 2009, and without being overly optimistic, it's fair to say that the data is moderately rosy. Among several bright spots in the report, one that seems particularly impressive is that July - September of 2009 saw Ford North America's first profit since the first quarter of 2005, four-and-a-half years ago.
In addition to Ford's North American pre-tax profit of $357 million, the company recorded a total net income of $997 million during Q3. That's a substantial improvement on the roughly $200 million loss posted one year ago, during Q3 of 2008 (which was, as you recall, about the time that the entire industry began sliding off a cliff). Ford anticipates being fully profitable by calendar year 2011.
In the company's official press release, Ford cites several reasons for its improved financial data, including reduced production expenses, strong product lineups, and higher transaction prices and profit margins. Over the three months, Ford increased market share in the U.S. by 2.2% and posted a small but respectable .6% growth in Europe. Most shockingly, Ford sales exploded in China, surging upward by 63%.
What's not much mentioned in the release, of course, is Cash-for-Clunkers, which had a huge impact on the company's sales in North America. However, even the aberrations associated with America's Cash-for-Clunkers can't account for the profitability of Ford's global operations. So, while we know there's room for skepticism when it comes to some of Ford's figures, it seems hard to argue with the fact that Ford is on the right track.
We're not financial analysts or advisers (obviously), but there appears to be quite a lot for Ford to crow about in Q3 of 2009. If you have nothing else to do on this Monday morning, feel free to scan Ford's full press release below and give us your take on the news.
