Ford has profit for 5th straight quarter, trims US sales forecast
Friday, July 23, 2010 at 01:26PM 
Ford Motor Co. reported Friday strong second-quarter earnings — its fifth straight quarterly profit — but trimmed its U.S. sales forecast.
The No. 2 U.S. automaker predicted its performance would be weaker in the second half of the year as the economy slowly recovers.
Ford predicts its performance will weaken in the second half of the year as the economy slowly recovers. (Jim Young/Reuters)Ford did better than many on Wall Street had expected, making $2.6 billion US as it continued to grab sales from rivals.
It earned $2.6 billion, or 61 cents per share. That compared with net income of $2.3 billion, or 69 cents per share, in the same quarter a year ago.
Ford's U.S. sales rose 28 per cent in the first six months of this year. That was almost double the pace of industry-wide sales.
"Overall, our performance this year gives us great confidence going forward," Ford president and Chief Executive Officer Alan Mulally said in a conference call with analysts and media.
Costs to impact bottom line
Ford predicted a strong 2010 and even better 2011. But it said it will make less money in the second half of this year because of seasonal plant shutdowns, costs for new product launches and rising prices for raw materials like aluminum.
The automaker said U.S. sales, which hit a 30-year low in 2009, remain weak, with many shoppers not yet confident enough about the economy to buy new cars.
Mulally said while the company lost some sales in Western Europe, it made up for it with increased sales in India, China, Brazil and the U.S.
Shares of the Dearborn, Mich.-based company rose 42 cents, or 3.5 per cent, to $12.51 at 11:41 a.m. ET on the New York Stock Exchange.
Helped by brisk sales of products like the Ford Fusion sedan and F-150 pickup, Ford has gained market share in the U.S. from Toyota Motor Corp., which was hurt by a series of safety recalls, and General Motors Co. and Chrysler Group LLC, who were tainted in some buyers' eyes for accepting federal bailout money last year.
Source: CBC News
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