Ford Motor Company surprised analysts with a $2.3 billion net profit for the second quarter of 2009. In the company’s financial results release, Ford reported revenue of $27.2 billion, or $0.69 per share. This report is a great improvement from last year’s second quarter results, which showed a loss of $8.7 billion, or $3.89 per share.
Ford posted a pre-tax operating loss of $424 million (excluding special items), a $609 million improvement compared to last year’s second quarter results. After taxes, Ford reported an operating loss of $638 million, or $0.21 per share.
Ford says that the latest quarter included a one-time gain of $3.4 billion based on restructuring plans of Ford and Ford Motor Credit. Restructuring during the second quarter included reducing automotive structural costs by $1.8 billion ($1.2 billion in North America), reducing U.S. workforce by 1,000 through a buyout program and raising $1.6 billion by issuing 300 million shares of common stock. The company also completed a series of transactions that cut total automotive debt obligations by $10.1 billion, which will save Ford more than $500 million per year in interest.
In the second quarter, Ford gained market share in all regions, compared to results in the second quarter of 2008. The company also qualified for $5.9 billion in loans from the U.S. Department of Energy for advanced fuel-efficient vehicles and began production on new products.
Ford expects the third quarter of 2009 results to be up from the third quarter of 2008, mostly due to tightly controlled inventories and higher market demand. The company says that it remains on track to exceed its $4 billion automotive structural cost reduction target for 2009, although it expects second-half reductions to be less than first-half reductions.
For the full second quarter 2009 results, visit the investor relations section of the Ford Motor Company website.