Ford Fortunes Show Signs of Life

by CP Staff

This week, Ford Motor Company reported net income of $100 million, or 5 cents per share, for the first quarter of 2008. This compares with a net loss of $282 million, or 15 cents per share, in the first quarter of 2007.

The results surprised many who continue to gleefully predict the demise of the company. Ford stocks responded positively on the New York Stock Exchange.

Strong results abroad, combined with effective cost-cutting within the domestic market, contributed to the turnaround.

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"The results of this quarter are encouraging, particularly our outstanding performance in Europe and South America," said Ford President and CEO Alan Mulally.

Traditionally a strong contributor, Ford Motor Credit Company reported net income of $24 million in the first quarter of 2008, down $169 million from earnings of $193 million a year earlier.

"The remainder of 2008 will be a challenge but we are cautiously optimistic despite the external challenges," Mulally added. "Our plan is working. Our initial quality is now among the best in the business, the restructuring in North America is taking hold and we will continue to take actions to stay on our plan."

CP