Yesterday, October 26th, Ford Motor Company posted unexpectedly strong 3Q earnings, proving the company is making a turnaround. This is the 6th continuous quarter of profit posted for the company, as F is gaining market share and sustaining growth. F reported a better than expected earnings of $1.7 billion, or $0.43 a share, up $690 million, or $0.14 a share, from a year earlier. F market share increased to 15.9% this quarter, up from 14.6% a year ago.
Ford being the only car maker to avoid a US government bailout, is has been diligently working to improve it's balance sheet by paying off debts and eliminating liabilities. Ford's total debt will be paid down to $22.8 billion, compared to $33.6 billion a year ago. The reduction of company debt will save F an estimated $800 million in annual interest payments. Company officials predict debt net of cash, currently standing at $2.6 billion, will be eliminated by the end of the year, which is one year earlier than the company predicted 3 months ago. The good press surrounding the company has been reflected in it's stock price which hit $14 on Monday.
~Sarah
No comments:
Post a Comment