Ford’s North American operations will become profitable in 2009, CFO Don Leclair told analysts today. Leclair didn’t say how large the profit would be, but an unlabeled chart shown during his presentation suggests the figure will be small.
One analysts described the bar representing Ford’s 2009 income as a “thin sliver of profits,” according to Automotive News. Another analyst estimated the profit will stand around $250 million.
So far this year, Ford’s North American operations reported a loss of $3.3 billion. Ford hopes to reduce its operating costs by $5 billion by the end of 2008, but other one-time costs are likely to be incurred over the coming years.
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11/14, 1:31 PM
posted by:
Foster
Keep up the good work FORD.
11/14, 2:17 PM
posted by:
lanapat7
2007 loss
2008 loss
2009 small profit
I hope the shareholders are patient.
11/14, 3:04 PM
posted by:
davidg1977
lanapat7.
to your point, i think what you see in the share price today has about their real estate plus cash and assets in the share price today. knowing that the losses are to be expected, likely that concern is already in the credit rating and thus factored into the stock price.
I would expect market share, gross profit per vehicle, quality, and emergence of new launches as the new defining parameters to the stock price. Depending on the consensus grade for those metrics is how the stock is going to get priced in the next 12-36 months.
11/14, 3:08 PM
posted by:
A4
well this is the second bit of good news to come out of Ford, hopefully they keep it up… still way behind GM though.
11/15, 2:20 PM
posted by:
Sharif
Sound great, but if your Ford you must wonder how much money will they spend in unforsable cost due to their attempt to reduce costs. I hope they are able to live long enough to make a profit. If they are able save their own ass they would make a good stock in the near future.
11/19, 12:57 PM
posted by:
LamborghiniZ
A PROFIT? FORD? WHAT?!