US firm is confident of avoiding bankruptcy proceedings
23 July 2009

Ford has recorded a $2.3 billion (£1.39 billion) net profit in the second quarter of 2009.

Ford’s position has been boosted by restructuring its debt and it is the only one of the big three car makers in the US not to enter bankruptcy protection proceedings.

The firm actually lost $424 million (£256 million) on an operating basis in the quarter, but it was lifted into the black thanks to the restructuring of its debt.

Twitter - follow

In 2008 Ford’s second quarter operating loss was $1 billion (£605million) and its net loss was $8.7 billion (£5.26 billion). Ford said it ended the quarter with $21 billion (£12.7 billion) in gross cash and it was confident of not having to enter bankruptcy protection proceedings.

Ford used $1 billion (£605 million) on an operating basis during the quarter, $2.7 billion less than in the first quarter of this year. Ford said its spending in the second half would be significantly lower than in the first half.

Ford is still predicting it will sell up to 11 million units in the US in 2009 and more than 15 million units in Europe. It said its financial position had been boosted by the launch of several new models, including the new Fiesta and Ka.

The success of these new models has seen Ford increase its market share and it expects this to remain the case for the foreseeable future.

Ford’s chief executive Alan Mulally said, “While the business environment remained extremely challenging around the world, we made significant progress on our transformation plan.”

However, the success story did not extend to Volvo, the struggling Swedish brand that Ford is trying to sell.

Volvo nearly doubled its quarterly loss before tax to $231 million (£140 million), compared with a loss of $120 million (£72.6 million) a year ago. Volvo’s second-quarter revenue was $2.9 billion (£1.75 billion), down from $4.3 billion (£2.6 billion) a year ago.

Lewis Booth, Ford’s chief financial officer, said talks to sell Volvo were “ongoing”, but declined to comment on a timetable or potential bidders.

See all the latest Ford reviews, news and video

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Volvo V90
    First Drive
    19 October 2017
    The Volvo V90 is a big estate ploughing its own furrow. We’re about to see if it is refreshing or misguided
  • Kia Stonic
    First Drive
    18 October 2017
    Handsome entrant into the bulging small crossover market has a strong engine and agile handling, but isn’t as comfortable or complete as rivals
  • Hyundai Kona
    First Drive
    18 October 2017
    Hyundai's funky-looking Kona crossover with a peppy three-cylinder engine makes all the right noises for the car to be a success in a crowded segment
  • Citroën C3 Aircross
    First Drive
    17 October 2017
    The Citroen C3 Aircross has got funky looks and a charming interior, but it's another small SUV, and another dynamic miss. Numb steering is just one thing keeping it from class best
  • Skoda-Karoq 2.0 TDI 4x4
    First Drive
    16 October 2017
    Diesel version of Skoda’s junior SUV is unobtrusive and undemanding, but we’d still go for the silkier petrol version of the Karoq