The recession hit automobile giant Ford is back on track. It has managed to post $2 Billion quaterly net profit. Ford Motors managed this purly from restructuring. Ford also said it was on track to at least break even in 2011. This made the investors happy! It shot Ford shares up more than 9%.
Ford also posted an operating loss for the quarter that was better than what analysts expected, excluding a net gain of $2.8 Billion from one-time items that included the debt reduction actions, despite reeling global markets that helped push General Motors and Chrysler into bankruptcy. The automaker said it expects the US economy to begin to recover in the second half of this year. Now that something I wanted to hear about.
“Despite the really tough economic environment our plan is working and the underlying business is improving,” Chief financial officer Lewis Booth told reporter. “We continue to make really good progress on cost reductions,” Booth said. “You can now see the results of the operations focused on cash.”
Ford is also the first automaker in the US to make such mark since 2004.