way to go ford…it seems all the changes they made are paying off now – and of course it should. Many new and great cars from ford in the last few years.

Nice to see a good headline on here for a change….

They better make profit and a lot of it. Reality is that Ford has 35 billion obligation note to write out in 2013. It’s a bit far in advance, but they need to make 22 billions of cold cash between now and then. Here is a simple math. Ford has 23 and change billions on hand. To keep lights on they need 10 billions. They need another 22 billions in addition to 13 in the bank today to pay off short term note in 2013. Even if they get 6 billions for Volvo (the price they payed) they still need to make 16 billions in 4 years: 4 billions per year profit. I wonder how management can explain that to UAW.

* Billion is already plural, you don’t need to say “Billions” hahaha it was fun to read tho…

It’s been awhile since we got good news here, it feels weird… congrats Ford!

Borat,
I doubt your facts are correct!

GO FORD!

I did my part to bolster those stats, but for what I paid for my orange Ranger I’m not sure how much profit was left over.

idrin, I wouldn’t doubt Borat’s numbers. We know for a fact they borrowed money… it was just at more of an opportune time than many of the others.

Oh and Borat, if they get 6 billion from Geely for Volvo I’ll buy you an orange Ranger!

War Mustang!
War Focus!
War Taurus!
War F150!
War Ecoboost!
War Fusion!
War FORD!

EPIC WIN!

Congrats Alan Mulally. The man deserves a raise.

I’m sure the debts are factored in when calculating profits. Borat must think a thug is going to show up and whack some knees. GO FORD!!!

For all those haters of American made products. Just lick it.

GO FORD….

johnny how many cars do you have? Neon, Sebring, Ranger every time I read through one of these threads you’re talking about another car you own!

Don’t get me wrong, I don’t mean this in a bad way. It just seem like an interesting mix of vehicles…

yeah, just about everyone on earth knows they are in debt, but I have yet to see anyone with credentials sum up their balance sheet, so coming from borat, I doubt he is right! It would have been simpler to just say that they are in debt $27 billion in debt, and that a profit of just 1B is still good in this economy compared to others!

aesir, we also have an ‘02 Mustang GT, an ‘89 Caprice woody wagon, a ‘95 Escort wagon and a ‘99 Honda Magna. We rotate them all throughout the year depending on the season. The Caprice and the bike live at our place in the B.C. Okanagan and the ‘Stang gets stored there during the winter as well. I’ve just never been able to drive just one car… I get bored too easily. Besides, it’s cheaper to have a lot of cars than a lot of women. And speaking of which it also helps to have a very tolerant wife!

The most important thing to notice about ford’s status is that they are NOT burning through their money like GM and chrysler. The fact that they still are in that much debt, and going through an economy when their closest rivals have eliminated their debt and are still burning through their money, shows that Ford is more concentrated on surviving. To me, this makes gm and chrysler look like they simply don’t care anymore! If you went through bankruptcy, why are you burning through money like crazy? And why are your shares worth only .13-.70(down more than 90%!) cents compared to ford’s which are closed at $7.65(^9.29%!)

@ idrin, I think the issue with Chrysler and GM is that they simply don’t have the kind of good management/leadership from the top executives that Ford does. GM and especially Chrysler seem to be stuck in this mentality that they can do less and get away with it. Have you seen the inside of a Chrysler lately? I didn’t know fisher price made interior components for cars!

FORD ROCK

Well if they’re not paying down the principal on their loan, then we see a problem real soon.

According to Ford corporate their “Automotive debt” is at $15.9b.

http://www.ford.com/about-ford/news-announcements/press-releases/press-releases-detail/pr-ford-completes-debt-restructuring-30154

Here’s to hoping that the credit market is better in 2013…

Great news for Ford and the U.S. and us. Shows the economy is improving. Borats numbers sound about right. They owe a whole crap load of money and need to make some huge profits in the next 3 years to pay off. Of course if they start making wheelbarrow loads of money all they have to do is sell some new stock.

At the end of the week we will have to see how all the marques did with market share in the 3rd quarter. Obviously Ford has increased while Toyota and Chrysler have most likely lost share. Believe GM is back on the upswing but not as much as Ford. Most important though as stated above is how much GM/Chrysler/Toyota/Honda are burning thru cash. GM has a lot available to them now and they have greatly increased vehicle development but they have to balance investment vs. income. No mention of cash burn form Ford above.

Ha! It is cheaper to have a lot of cars than a lot of women. That is a lot of cars though, but if you have two places that makes sense. I had a buddy that had a Magna. He picked up a Road Star last year. I think he still has the Magna.

Zesty Honda,
fisher price….HAHAHAHHA

Salute Ford for making a buck the old-fashioned American way, without latching onto the government’s teats. Alan Mullally should be president of the United States.

Looking forward to buying a Ford ASAP to reward this company’s hard work and morality. Ford people fly high; GM, hurry up and die.

Ford is rolling in the right direction, and I am glad to see it. The Ecoboost engine development is going to do wonders for the company. Now if they would only jump on the diesel band wagon.

@idrinorbarsaku, just to set record straight statistics link s below.

http://finance.yahoo.com/q/ks?s=F

On terms of 2013 short term debt, do you own research and don’t believe me: google Ford and 2013 pay note. See what comes up.

go ford!!!! stock is uuup

F-YEAH !!! WAY TO GO FORD !!!!

Borat, they’ll just refinance.

no one is arguing that they have debt. You just post numbers that most other people don’t even know how to read. They are restructuring their assets, and are transitioning their debt to income ratio for the better. You can not deny that they are doing good in this time! Compared to gm, it shows that they have faith in their own company! That’s why we bought a new ford, and that’s why people also have more faith in a company who backs them selves up and takes up a challenge that GM’s own CEO claimed would cause them to fail! I don’t know if you remember back before GM filed for bankruptcy, but they argued that they never will because they “had faith” in GM’s success. Then they said that Ford would benefit from a bankruptcy(LMAO), but now we see who the real benefactor really was! What does that mean for GM now that they went through bankruptcy? Are they faithless in their brand? I happen to think so!

GM, go screw yourself even further, I don’t care!
GO FORD!!!

comparing today’s share price between gm and ford isn’t exactly apples-to-apples…gm went bankrupt, which caused the de-listing of actual gm shares, and zombie post-bankruptcy/pre-reorg shares are all that remain under a different symbol…so what you can trade today isn’t really a true measure of the value of the company, which is what shares are supposed to represent in a sense…after the reorganization is mature, gm will re-issue shares at a new price…only then will they become apples-to-apples comparable again with respect to share price, market cap, etc…

just a reminder, ford does not live in a vacuum with respect to parts suppliers, and the auto bailout served to prop up the ~25-30% of parts suppliers that would’ve gone bankrupt without gm still being in the market…in other words, ford did benefit from the bailout…

Way to go FORD, glad I bought (F) stock at $1.50 earlier this year and its going UP!

As far as Ford financials, you need to split them in (2) – Ford Auto ops and Ford Credit, big difference. Ford auto ops has about $28+Billion in debt and can (and will) issue new shares of (F) Stock to convert a lot of this debt (to equity), especially as the stock price continues to rise. Ford credit has its own (re) financing underway and regularly “rolls over” its debt to better interest rates (as their credit rating continues to improve) and in the credit market as rates stay low.

So NO Ford does NOT need to “pay off” any debt due by 2013, it can be converted to (F) stock as equity and (re) financed, so Borats numbers are grossly in error, Ford has $24+Billion in operating cash with “postive” cash flow. Plus, their (19) “PhD Whiz Kids” continue to deliver optimum pricing models as proof by Fords increasing transaction pricing to the tune of $1.9Billion… cool!

Note: If Ford can sell just 20,000 MKT’s next year, it will add $1Billion to (very profitable) revenue. Watch the sales numbers tomorrow, but be aware that Ford had to “shut down” the plant that makes MKT for 1-week and will lose thousands in production volume (thanks to parts shortage out of India.)

i bought at 4.41 earlier this year…. damn i wish i scooped it up at only 1.50 !!

Borat, the problem with your numbers is that you subtracted operating costs twice. posting a profit means they’ve already paid for operating costs(so they don’t have to take money they already had to pay for it) and had $997million left over to add to their $23 billion. which means they only have to post an average profit of $2 billion per year for the next 4 years to repay the loan. However, they’ll probably pay off the majority of the loan and refinance the remainder(likely less than $10 billion).

Tom, maybe they will and maybe not. If you know how to read numbers, I am sure you do, you’ll see 133 billion worth of debt vs less 30 worth of assets (mortgaged assets at that). After all, Ford is not US government, Ford can’t print money.

@idrinorbarsaku, I understand. If you can’t read numbers you are absolutely right I can’t be more wrong. Cheers.

Borat
the 133 Billion you are talking about is 85% Ford credit debt and 15% Ford Motor Company debt. But you already knew that because “you know how to read numbers. “

+1 to greg, who must work with $ for a living…hehe

borat, read greg’s post, ford can’t print money, but they can issue shares…which are worth increasingly more money as time goes on…

borat..you ever hear of refinacing?
way to go Ford.. good job

Borat,
I love how you are so full of yourself that you can’t clearly see what is right or wrong. Your fact’s are SIMPLY wrong! Prove me wrong by showing me fact’s, not just numbers that anyone can find related to their stock portfolio! Otherwise, you can STFU because everyone seems to disagree with you! Seems like all you know how to do is sum up their balance sheet…which you seem to not understand to begin with!

greg- Good post. I’m just curious for the sake of it, how much profit does each MKT make? Or well, how you got the $1 billion mark, cause that’s a lot of profit from each one sold.

johnny- I’m guessing you sold the good ole’ Tracker then?

And whoa! A woody Caprice wagon? A friend of mine bought one not too long ago. I think someone had reattached the rear window with some Great Stuff, and it had some strange-red soaked shirts in the rear undercompartment. Knowing how much space the thing is and how solid it was, it would be my number two pick for any “zombie attacks”.

jayjc, believe it or not they gave me $3,500 for it when I traded it on the orange Ranger. I was hoping for a grand… 1,500 tops.

The Caprice is awesome. We use it to go the beach… and all the toys just stay in the back. Why don’t they make cars like that anymore?

AWESOME JOB FORD! And it is nice to see good news for once!

I hate to say I said so earlier, but, Ford just annouunced (3) re-financing initiatives:
- Extend revolving credit from 2011 to 2013 with $6Billion already accepted, deadline to banks is Nov 15
- $2Billion convertible note due 2016 – combination of stock / cash – Ford’s discretion (Printing Money!!!)
- $1Billion of stock distribution at market prices over next 7-months… printing more money!!!

Thats $9+Billion of improvements to the $38Billion Auto ops debt side of the balance sheet with great timing on Q3 results plus an upgrade from a ratings agency… I’d say Ford (F) is a buy under $7…

Great news for Ford. A quality product sells itself. It would have been nice had they gotten on the ball about 10 years ago…but better late than never!

Did just read that they did not burn any cash in the 3rd quarter and in fact added to their reserves. Wow, what a change increasing market share can make. No wonder Toyota is screwed and reducign the number of full size trucks/SUV’s.

@Borat: What they need is to be profitable so thei’r creditors allow another refinancing. Like they did now.
So much for your “they need to…” whatever.

@greg: Your analogy “more stocks” == “printing money” obviously fails.

@Yaroukh, I don’t believe Ford can do another re-financing. Company mortgaged everything including the blue oval. And you are correct, they probably can’t issue more shares. As it stands now, Ford family (via foundation) owns 5% of shares and has 40% vote power. Printing more shares will distort legalities of existing balance of power. I am not sure if family will go for that or if less then 5% of stock ownership can control 40% (other investors may not want that).

Hey everybody,Ford SUCKS!
War UAW
Epic Win! Jobs Bank will return 2010
All givebacks returned 2011
STRIKE! Epic Win
Ford SUCKS!

borat knows how to “read numbers” that’s why he writes ” 23 Billions, 6 Billions, 10 Billions” hahaha!

Borat is closer to the truth than anyone here. BUT I do think Ford will be able to print some more Ford stock and sell it IF they continue to buck industry trends and record profits. Americans will go hog wild to invest in a winning US company especially as the economy gets better and people loosen their purse strings. And the Ford family may buy some of that stock to keep their 5%.

And for all the naysayers out there. Looks like THIS year will be a 10.3 -10.5 million sales year and somewhere north of 11.5 million for 2010. At least the latest forecast from another source, Toyota, says.

As I have said before the auto industry will lead the nation out of this recession.

As far as refinancing, Ford can do it but they will do it to reduce interest rates when their bank ratings improve. This is like refinancing your mortgage to a lower rate. Allows more cash in their pocket to invest or pay off debt.

“Bob Carter, group vice president for the Toyota Division, said industry sales this year will likely be between 10.3 million and 10.5 million. The industry will likely pick up next year to around 11.5 million to 11.7 million sales, he said.

“We’re seeing a good upswing in the second half that bodes well for the future,” Mr. Carter told a gathering of journalists.”

“Ford Looks To Pay Off Some Debts Early

Hours after surprising Wall Street with a profit of nearly $1 billion for the third quarter, Ford Motor Co. announced plans late Monday to refinance a portion of its debt and pay it off in 2013 rather than in 2011 — a move that will give the automaker some breathing room in repaying its loans.

“The early response from our lenders to this approach has been very positive, with some of our major banks already agreeing to extend about $6 billion,” Lewis Booth, Ford’s chief financial officer.”

Please explain to me how they “pay off some debts early” while they report they are paying it off in 2013 vs 2011?

Ford will provide $1Billion worth of new stock in a “distributon” at market price over 7-months where these probably are “A” class, while Ford family holds “B” class with stronger voting rights. This will not effect the voting power of the Ford family.

Ford also said in exchange for extending their revolving $10+Billion credit line from 2011 to 2013 they will pay down over $2Billion and offer a $2Billion convertible note due 2016 in stock/cash at Ford’s discretion… all solid good moves well timed by Ford.

the question i have is what will happen to the share price as we get closer to 2011 when they’re predicted to return to profitability…how much of that is reflected in the current share price, and how much more room is there for growth in the short term (short being 1-2 years)…

First of all, there are 3.2Billion shares of Ford (F) available and the added $1Billion stock distribution at market price (est. $7.50) will add about 150Million shares for a 5% dillution factor, not much and spread over 7-months should have little/no impact on share price.

An earning scenario: What if Ford earns $3.35Billion in 2010 with 3.35Billion shares of stock = $1.00 per share earning at a Price/Earning (PE) ratio of (10?) would equate to a $10 stock price. Note the PE ratio of the S&P 500 stock index is currently about (18), rather high vs. (14) avg.

If Ford could earn $1Billion in this lousy economy and auto market, just imagine what they can earn with (6) new powertrain engines (1.6EB, 2.0EB, 3.5EB, 5.0V8, 6.2V8 and 6.7V8 Diesel) and a completely replenished productline within 2-years as the economy and auto market improves… $10Billion earnings per year is not that far out of reach…so run the numbers and Ford (F) could be a $20 stock in a few years… thats why I own thousands of shares (at $1.50) in my Roth IRA… tax-free baby!!!

greg,
that’s what I was wondering too. It seems like Ford’s cake tastes delicious and they haven’t even placed the icing with the cherry on top yet!

- 0.5k for celebration party
-30+ mills for bonus
-100 mills for CEO
-50 here and there