Dearborn, Nov 3 (THAINDIAN NEWS) Automobile major Ford Motor Company (NYSE:F) surprised all when it showed a $1 Billion profit. The automaker said on Monday that, ‘earnings were fueled by U.S. market share gains, cost cuts and the “cash for clunkers” program, which drew buyers to showrooms this summer’.
This profit is quite a good piece of news for Ford, as the company lost more than $14.6 billion in 2008 and hasn’t posted a full-year profit since the last 4 years. While it made a profit in the second quarter, that was mainly due to debt reductions that cut its interest payments.
‘Ford reported third-quarter net income of $997 million, or 29 cents per share. Ford also forecast a “solidly profitable” 2011’. Previously the automaker had said that it would be break-even or better.
The major reason for the profit was the Cash for Clunkers program, under which the fuel-efficient Ford Focus sedan and the Ford Escape, a small SUV, were among the top five sellers. Ford sales climbed an amazing 17 percent in August thanks to the program.
Chief financial officer Lewis Booth said the company took in $1.3 billion more than it spent in the quarter. “That’s a huge deal,” he said.
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