f_logo.jpgWinds of change blew over the North American automotive landscape during the July – September period, influencing a quarterly profit of $997 million ($0.29 per share) at Ford Motor Company (NYSE: F, F message board), against a loss of $161 million ($0.07 a share) for the tallying three months of a year ago. The result also topped analysts’ forecast of $0.12 per share in loss for the period, all due credit to market share advances, year to date cost cuts of $4.6 billion and the subsidies that were offered to trade in used vehicles for new fuel efficient ones under the “cash for clunkers” programme.

   Ford had edged its Detroit competitors - Chrysler and General Motors Company – in North America during the third quarter, taking its sales 26 percent up to $13.7 billion, and total cash at hand of $23.8.
Furthermore, for the first time since 2007, the company’s cash flow was in the black in the quarter, coming in at a relatively strong $1.3 billion. On the other hand, Ford is still under a financial obligation of $26.9 billion, most of which is payable next year, while some of the firm’s loaners have extended the due date to 2013.

  Looking ahead, Ford, the only one of Detroit’s big three to continue as a going concern without the aid of a government bailout, flipped over its earlier break-even expectations for full year 2011, to a sunny outlook of “solid profitability”. Ford also announced that it intends to raise a capital through issuing about $1 billion worth of new stock and up to $2 billion in bonds that would eventually be convertible to shares of stock. The finances would be directed to satisfy the carmaker’s indebtedness.

  “We expect the moves will enhance Ford’s automotive liquidity and over time reduce the company’s debt burden, providing an additional cushion given the still uncertain state of the economy”, said Alan Mulally, the company’s president and CEO.

  Ford shares closed at $7.58 on the news, up from the previous $7.00. However, by the time of writing the stock had declined 1.45 percent to $7.46.
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  Reference:
http://media.ford.com/