Europe Slips Into The Red Though
Just to prove that you don’t have to be a German car manufacturer to produce amazingly impressive results, Ford Motor Co announced that net income jumped to a record-breaking $1.7 billion in the third quarter.
There was some bad news though. Ford of Europe reported a pre-tax operating loss of $196 million, compared with a profit of $131 million in the same period last year, citing falling sales and rising raw material costs.
Ford Motors’ third quarter profit was the biggest in the company’s history for the period, and was $690 million better than the same period of 2009.
The Financial Times Lex column was impressed.
“Perhaps the most significant aspect of Ford’s renaissance has been its professed focus on quality and the bottom line. Detroit rivals previously unfamiliar with the phrase “less is more” may attribute Ford’s success to their own turmoil, but Ford is walking the walk, not just talking the talk: restrained rebates, inventory levels and fleet sales confirm it. Ford is putting out a better product and convincing customers to pay accordingly,” Lex said.
CEO Alan Mulally said he expected solid results in the fourth quarter and a further improvement in 2011 in spite of challenging business conditions and higher costs.
Neil Winton – November 1, 2010
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