Smaller Cars Lift Ford’s Profit to $2.55 Billion - "largest first-quarter profit since 1998"

[jefferson_dem]

Source: NYT

Smaller Cars Lift Ford’s Profit to $2.55 Billion
By NICK BUNKLEY

DEARBORN, Mich. — The Ford Motor Company reported on Tuesday its largest first-quarter profit since 1998, despite a shift in sales to smaller, more fuel-efficient cars.

Ford earned $2.55 billion in the quarter, or 61 cents a share, up from $2.09 billion, or 50 cents, in the period a year earlier. The results should ease some concerns that the company was losing momentum after fourth-quarter earnings missed expectations, though quickly rising gasoline prices and earthquake damage to auto parts factories in Japan still pose a threat to Ford and the rest of the industry.

“Our team delivered a great quarter, with solid growth and improvements in all regions,” Ford’s chief executive, Alan R. Mulally, said in a statement. “We continue to accelerate our ‘One Ford’ plan around the world, delivering on our commitments to serve our global customers with a full family of best-in-class vehicles and deliver profitable growth for all, despite uncertain economic conditions.”

Typically, smaller cars result in lower profits. But new high-mileage models, including the Fiesta subcompact, allowed Ford to increase its pretax earnings in North America by 50 percent, to $1.8 billion. Globally, revenue rose 18 percent, to $33.1 billion.



Read more: http://www.nytimes.com/2011/04/27/business/27ford.html?_r=1&pagewanted=print

[Kurmudgeon]

1. Ford profits while Toyota stumbles... n/t

[UpInArms]

2. so the giant urban assault vehicle can be shitcanned now that it has

been proven that it is the profit maker that it has been mythed to be?

[eppur_se_muova]

3. "Despite" ? Excuse me? Try "because".

Someone please explain to this journalist that this is connected to the concept of selling people what they *want* to buy.

[Frank Cannon]

7. That stuck out for me too.

What an asshat. Remember when news reporters used to, you know, report the news?

[DBoon]

4. So having a union contract didn't hurt their record profits?

So much for the UAW destroying the American car industry

[JNelson6563]

10. No kidding.

Well said.

Julie

[freshwest]

11. Oh, yeah, sing it loud.

[Auggie]

5. Why not? Small, affordable cars built Ford...

[hughee99]

6. Did Ford do this by just charging more for the cars?

"Higher sales prices contributed $900 million to Ford's first-quarter pretax profit. By contrast, commodity price pressure and other material cost increases represented a drag of $700 million.

In its home market in the United States, average margins rose $250 per vehicle from a year earlier, Edmunds.com said."

They raised their profit margins on the cars and made a bigger profit. Companies do this all the time and usually this isn't received so well here.

[sarcasmo]

8. I would look at a Fusion, need to rent one first for a week to test the durability.

[jkappy]

9. Offer a Fiest with Fold-Flat Seats and I'm In

Ford has 2-3 terrific small cars but none with that much space. I hope they soon remedy this situation--and follow Toyota and Honda to the fold-flat back seats.