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Ford posts big profit in Q-2

|Includes: Ford Motor Company (F)


 
Ford Motor Co. posted a surprise profit of US$ 2.3B for Y 2009 Q-2, a sharp contrast to the Big US$8.7Bloss it reported for the same period a year ago. However, the profit was largely due to one-time gains related to its debt reduction moves, according to a Detroit News report. Even with those special items removed, the US automaker surprised Wall Street with a pre-tax operating loss of 424 million dollars for the second quarter of 2009, excluding special items, a US$609M improvement compared with the second quarter of  2008. After taxes and excluding special items, Ford posted an operating loss of 638 million dollars in the second quarter, or 21 cents per share, compared with a loss of US$1.4B or 63 cents per share a year ago. Savvy market observers also believed that rivals' troubles have helped Ford. Ford is alone among American car makers in refusing a government bailout and avoiding bankruptcy. Analysts say it has benefited from the woes of its rivals; GM and Chrysler.