Ford automaker announces $2.1 billion profit

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Ford motors

Ford motor company is recovering quickly from the economic crisis. Image from Flickr.

After an operating loss of $665 million last year, Ford automaker has announced first-quarter earnings of $2.1 billion in 2010. The only automaker to not take government money, Ford is still working on paying off borrowed money. Three of the top 10 sellers in the United States in 2010 were Ford vehicles.

Ford is No. 2 carmaker

Ford motor company was able to increase its market share by 2.4 percent in the last year. Only General Motors company has a larger market share than Ford. The F-series pickup truck was the only car in the United States to sell more than 100,000 units this year.

Ford paying off debt

Though Ford was able to post an operating profit this quarter, this does not mean the company is in the black. Currently, Ford motor company has $25.3 billion in available cash. However, the company also has $34.3 billion in debt. Ford is also facing a 2013 deadline to pay off $12.7 billion worth of loans. One $3 billion payment was made immediately after the end of the first quarter – so if improved sales continue, Ford should be able to pay off its debt on time.

Launch of new Ford models

During 2010, Ford motors is planning on introducing redesigns of two vehicles: the Ford Fiesta and Ford Focus. Both of these vehicles are focused on moving Ford away from the SUV- and truck-heavy product line that has sustained the company in the last few years. At the Beijing auto show, Ford also introduced the Start urban concept vehicle. The 1-liter engine is slated for production in the next four to six years.

Ford stock earnings

Last year, Ford stockholders lost about 60 cents per share. By the end of the first quarter of 2010, stockholders saw a 50-cent gain. If Ford is able to make full payment to its lenders, it will be in a stronger financial position than other United States carmakers.

Sources:

LA Times
New York Times

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