Ford Posts $424m Q2 Loss, Burns a Billion Bucks; Rev Down 11 Billion From Year Ago

[ByLoSellHi]

Ford Posts $424m Q2 Loss, Burns a Billion Bucks

http://www.thetruthaboutcars.com/ford-posts-424m-q2-loss-burns-a-billion-bucks/

By Robert Farago
July 23rd, 2009

Huzzahs will greet Ford’s execs this morning, as The Blue Oval Boyz didn’t lose as much as they could have, and didn’t burn as much of their cash pile as they could have. More specifically, the DOE loan-taking American automaker reported a $424 million pre-tax operating loss on net income of $2.3 billion. (”Special items” created a net gain of $2.8 billion, including a $3.4 billion gain via debt-reduction.) The automaker ended the second quarter with “Automotive gross cash” of $21 billion. That means Ford’s “operating-related cash outflow” (i.e. cash burn) was $1 billion. Before the results, Ford CFO Lewis Booth claimed Ford was “certainly confident of getting through this year” with sufficient cash. True dat. Meanwhile, business sucks: Ford’s second quarter revenues clocked-in at $27.2 billion, down $11 billion from the same period a year ago.

 

[AyeYo]

I wonder where all the "zomg Ford beat Toyota in Q1!!!!!!!!!! They're taking over the word!!!" fanbois are now.

 

[lindq]

Quote from AyeYo:

I wonder where all the "zomg Ford beat Toyota in Q1!!!!!!!!!! They're taking over the word!!!" fanbois are now.

I'm right here, making good money on F that I bought at 3.25.

The easiest decision I made in the past 10 years was to buy F at that level.

 

[AyeYo]

Congrats on the money and good trade, but that says nothing about the company itself. I've heard the same thing from people that bought C and BAC months ago too. big run =/= good company

 

[Kassz007]

Huge debt reduction for Ford. Net income of $0.69/share vs. net loss of $3.89/share last year. Ford is showing definite improvement and is not losing nearly as much money as in previous quarters. Market share increased. Billion dollar cash burn hurts but Ford will not go bankrupt at this level. Overall the quarter was much better than everyone expected and the company still expects a full year of profitability in 2011.

I'm not a buyer of Ford here because they will issue more shares causing dilution, but I will definitely keep my eye on it.

 

[trendlover]

Quote from Kassz007:

Huge debt reduction for Ford. Net income of $0.69/share vs. net loss of $3.89/share last year. Ford is showing definite improvement and is not losing nearly as much money as in previous quarters. Market share increased. Billion dollar cash burn hurts but Ford will not go bankrupt at this level. Overall the quarter was much better than everyone expected and the company still expects a full year of profitability in 2011.

I'm not a buyer of Ford here because they will issue more shares causing dilution, but I will definitely keep my eye on it.

Yes. With less debt, that is no interest to pay for that debt, so more cash for the company. Then new shares offered is more cash. So maybe a slow build of profit to debt is what will happen if the new cars are successful.

 

[Kassz007]

Quote from trendlover:

Yes. With less debt, that is no interest to pay for that debt, so more cash for the company. Then new shares offered is more cash. So maybe a slow build of profit to debt is what will happen if the new cars are successful.

Absolutely. Management is proving it can withstand such difficult times. Quite impressive how they've positioned themselves going into this recession. I have confidence in management going forward that Ford will produce in demand vehicles and grow market share.