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Ford Reports Second-Quarter Profits Up 13%

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On: Mon, Jul 26, 2010 at 8:56AM | By: Sherry Christiansen

Ford Reports Second-Quarter Profits Up 13%

Contrary to what many financial analysts predicted, Ford Motor Company’s second-quarter profit has reached $2.6 billion, a 13% increase, marking the fifth quarter in a row that Ford has been able to report the good news. Sales have been up for Ford Motor Co. as a result of the new redesigned the Taurus, and many new fuel efficient models that have been launched this year, which have shown that Ford continues to be a success in the marketplace.

Ford’s total sales climbed to $31.3 billion, which is quite an increase over last year’s numbers, which were reportedly only $27.2 billion.

In a recent conference call, Ford’s CEO Alan Mulally stated, “Overall, our performance this year gives us great confidence going forward.”  He continued, “We are ahead of where we thought we’d be.”

Paying off debt has been a big goal for Ford and analysts say if the company continues the track record it has set so far this year, that goal should be attained by the end of 2011. According to analyst Shelly Lombard: “It can give the company more flexibility and ultimately improve the way they’re perceived on Wall Street.”

Analysts predicted a 41-cent rise in stock shares but Ford reports stock earnings at 68 cents per share, to $12.73. Ford shares had fallen as low as $1.26 in 2008.

According to a recent Associated Press article posted on www.kval.com, Ford, which had mortgaged everything to avoid taking government bailouts as well as bankruptcy, is now “reaping big rewards and stealing business from stumbling rivals.”

According to the CEO of Ford, the company is number one in the U.S. for the popular F-Series pickup trucks, as well as the most popular crossover SUV, the Escape.

Ford sales have continued to gain momentum in the past year, surpassing its rivals, GM, Chrysler, and Toyota. Toyota has taken a back seat after multiple safety recalls, and many car buyers have stayed clear of GM and Chrysler cars, fearing they won’t be able to access service centers as a result of financial problems causing both companies to close the doors to thousands of franchise locations.

Consumer Reports' high quality ratings certainly has not hurt the Detroit automaker as it created more economical systems to allow cars and trucks to “share more parts,” according to an Associated Press article.

Also, according to Lewis Booth, Ford’s CFO, new products such as the Fusion sedan are partially responsible for the turnaround of the company. "If you've got great products, you can go to market in a sort of confident fashion," Booth said. "If you haven't, it's much tougher."


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