Ford stock is blowing up and also the Ford earnings report released Tuesday shows its best quarterly performance in six years at $ 2.1 billion. Ford Motor Company has earned a profit for consecutive quarters when its rivals flounder and is also the only Detroit automaker that wasn't bailed out of bankruptcy with paydayloans from the Federal Government last year. By cutting their costs and increasing their sales, Ford stock and earnings report numbers shifted from negative to positive a whole year ahead of their schedule, even as the new cars market hasn't recovered yet.
Stock price for Ford soars
For stock hit $ 14.57 Monday making it a five year high. The Ford earnings report showed net profit equaling 50 cents a share, blowing away Wall Street expectations of 32 cents a share. One year ago, Ford stock traded at $ 1.91 a share, and also the Ford earnings report showed a loss of $ 1.4 billion–a net loss of 60 cents a share. Alan R. Mulally said it would work to introduce new products, close plants, and eliminate tens of thousands of jobs when he took over just four years ago as boss. Presenting the Ford earnings report, Ford executives said the company expects to continue selling cars for positive money flow in the urgent future.
Ford earnings report fuels production
Ford said it planned to build 625,000 vehicles in the United States and Canada in the second quarter, which is 9 percent more than the first quarter and 39 percent a lot more than very same period a year ago. Later this year, smaller and more fuel efficient cars should be introduced with the aim to capture a bigger piece of the growing market. Ford fans will be getting auto financing fairly soon for new versions of the Fiesta and Focus, plus a retooled Edge crossover and a a lot more fuel efficient Explorer SUV.
Ford stock analysis
The Ford stock has increased more than 40 percent in 2010 if you analyze stock. Ford's market share within the United States rose up to 16.6 percent within the first quarter, which is apparently up 2.7 percent from the first quarter 2009. It outsold General Motors for the first time in 50 years in February. In addition to cost cutting and focus on quality, Ford’s gamble to forgo the government bailout appears to have paid off in spades as the images, and sales, of GM and Chrysler have suffered. Also, Toyota’s recall of a lot more than nine million automobiles and also the ending publicity nightmare of the past six months probably hasn’t hurt Ford stock either.
Ford Stock and also the outlook
The Ford stock outlook hints that the Ford stock price may not sustain its current rally. The New York Times reports that Lewis W.K. Booth, Ford’s chief financial officer, said the business does not necessarily expect each of the next 3 quarters to be as strong as the first, particularly if an improving economy leads to higher interest rates later within the year. As it seemed to be on cue, Ford stock began falling after the company's earnings report was released on Tuesday. As of noon Eastern Time the Ford stock price was down about 6.5 percent at $ 13.50 a share. Monday’s closing price for Ford stock was the highest since January 2005. Within the Ford stock outlook, debt survival may be an issue. The company still seems to have much more debt $ 34.3 billion, than money, $ 25.3 billion.
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