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Mulally, Bill Ford Reap the Rewards of Their Success

Top two Ford execs getting nearly $100 mil in stock.

by on Mar.08, 2011

Ford CEO Alan Mulally (shown here) and Chairman Bill Ford collected nearly $100 million in stock bonuses.

Ford Motor Co. has awarded nearly $100 million in stock to its top two executives, CEO Alan Mulally and Chairman Bill Ford, as a reward for the company’s strong performance.

The maker turned in a $6.6 billion profit, last year, its best earnings report since 1999, and a significant turnaround for a company that lost $31.4 billion between 2005 and 2009.  Ford was, however, the only Detroit maker to avoid filing for Chapter 11 bankruptcy protection two years ago.

The maker’s stock has risen roughly 14-fold since it hit bottom, in 2008, though Ford shares were priced at $14.50 at midday Tuesday, down from a 52-week peak of $18.97, reflecting concerns about the Libyan crisis and the automaker’s weaker-than-anticipated fourth quarter.

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Mulally was awarded 3.8 million shares of stock, priced at $14.76 a share, for a total of $56 million.  William Clay Ford Jr. was presented 2.87 million shares, worth $42.4 million.

The two executives had to cover taxes, however, the company withholding $23 million in stock for Mulally, and $17 million in Ford’s shares.

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Ford Could Add Extra $13 Bil to 2011 Profits

Accounting change alone could double 2010 earnings.

by on Mar.07, 2011

Ford could add $13 billion to earnings through an accounting change reflecting its improved performance.

Ford Motor Co. could be in for a whopping $13 billion profit, this year, simply from an accounting change that reflects the increased optimism about the Detroit maker’s financial health.

That move would dwarf the $6.6 billion Ford earned during 2010, even before the maker actually posted the results of its automotive and financial services operations.

At the end of 2010, Ford revealed it had reserved $15.7 billion in what is known as a valuation allowance, which is held against deferred tax assets.  That is one of the largest figures among any U.S. corporations and, notably, the company must remove the item from its books, according to tax laws, once it is in a period of sustained recovery.

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With Ford expected to post another significant profit for 2011, “We would remove our valuation allowance,” spokesman John Stoll said, “if that continues.”

The maker is expected to take the step sometime this year and would likely report the change as a special, one-time action in order to minimize the tax impact.

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CEO Mulally Credits New Products, Leaner Structure For $2.6B Second Quarter Ford Profit

Drawing down debt now a critical goal for Ford Motor Company.

by on Jul.23, 2010

Ford's latest earnings are, allegedly, taking Wall Street by surprise.

Ford Motor Co continued to roll forward during the second quarter of 2010, reporting a profit of $2.6 billion, or 61 cents per share, as each of its major business operations around the world posted  larger  profits.

The second quarter financial report reflected the best results by Ford since the first quarter of 2004, Ford chief executive officer Alan Mulally said, adding the company should be able to go from a net debt to a net cash position by year-end.

“We delivered a very strong second quarter and first half of 2010 and are ahead of where we thought we would be despite the still-challenging business conditions,” Mulally said, adding Ford expects to continue to post strong results through the balance of the year and through 2011.

“We remain on track to deliver solid profits and positive automotive operating-related cash flow for 2010, and we expect even better financial results in 2011,” Mulally said.

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It is hard to argue that Ford is on a roll, according to industry analysts.  The maker has landed at or near the top in a variety of new consumer studies, including the J.D. Power Initial Quality Survey, which in June showed Ford to be the top-ranked mainstream brand for out-of-the-factory quality.  The maker also dominated the recent Ideal Vehicle Awards, from AutoPacific, Inc., a measure of which products motorists are most passionate about.

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Ford Posts Best Quarterly Profit In Six Years

Maker’s $2.6 bil profit easily exceeds expectations.

by on Jul.23, 2010

Big profits and a smaller debt load for Ford.

Ford Motor Co. has delivered another big surprise, a $2.6 billion profit for the April-June quarter that’s not just the maker’s best quarterly profit in six years, but handily above analysts’ expectations.

Arguably even more significant is Ford’s promise that by year’s end it will have more cash on hand than debt, a striking turnaround for a company that risked mortgaging virtually all its assets to ensure that it had the money to survive what has been one of the worst automotive downturns in history.

Before making the usual one-time adjustments, Ford’s second-quarter earnings came in at just under $2.7 billion, or 68 cents per share.  Industry analysts had expected 41 cents.

“We delivered a very strong second quarter and first half of 2010 and are ahead of where we thought we would be despite the still-challenging business conditions,” Ford President and CEO Alan Mulally declared in a statement.

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Ford actually drew down its cash reserves by $3.4 billion during the quarter, leaving it $21.0 billion in the bank, but it was also able to reduce debt by $7 billion, to $27.3 billion.  The maker says it plans to have more cash than debt by the beginning of 2011.

For the first half of $2010, Ford has now earned $4.7 billion, up from $834 million during the same period last year.  The maker actually reported an operating loss, during the second quarter of 2009, of $638 million, or 21 cents a share.

TheDetroitBureau.com’s Joe Szczesny has a more complete report on Ford’s second-quarter surprise. Click Here for more.

Ford Turns In First Annual Profit Since ‘05

Maker continues gaining momentum.

by on Jan.28, 2010

Ford posts a huge turnaround during the worst year for the auto industry since the Great Depression.

Ford Motor Co. reported net income of more than $2.7 billion, or 86 cents per share, a $17 billion improvement from a year ago, as its comeback plans exceeded expectations by the delivering the maker’s first full year of profitability since 2005.

The full-year profit included net income of $868 million or 25 cents per share in the fourth quarter, $6.8 billion better than the company reported a year ago when many analysts were predicting Ford would be forced into bankruptcy right alongside General Motors and Chrysler.

The fourth-quarter numbers included a pre-tax operating profit of $707 million in North America, a market which many observers had written off as hopeless. Last year, Ford’s North American Operations lost $2.6 billion in the fourth quarter.

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Ford also posted pre-tax operating profits of $454 million for the full-year, a $7.3 billion improvement from a year ago, with significant help from Ford Credit, which itself rebounded in 2009 to post a $1.3 billion profit.

“While we still face significant business environment challenges ahead, 2009 was a pivotal year for Ford and the strongest proof yet that our One Ford plan is working and that we are forging a path toward profitable growth by working together as one team, leveraging our global scale,” said Ford President and CEO Alan Mulally, who also noted that Ford gained market share around the world last year.    (more…)