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 Business 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 low interest loans from the Federal Government last year. By slashing costs and increasing sales, Ford stock price and Ford earnings report numbers have shifted from negative to good a year ahead of schedule, even as the market for new cars has yet to recover.
Stock price for Ford soars
Monday, Ford stock hit a five year high at $ 14.57. When Wall Street only expected it to gain 32 cents a share, it really went up 50 cents a share according to the Ford earnings report. Ford stock traded at $ 1.91 a share just one year ago and the earnings report showed it had lost $ 1.4 billion, which is 60 cents a share. Introducing new products, closing plants and eliminating tens of thousands of jobs is working like Ford boss Alan R. Mulally said it would when he took over four years ago. Presenting the Ford earnings report, Ford executives said the business expects to continue selling cars for good money flow in the urgent future.
Production fueled by Ford earnings report
Ford said it prepared to build 625,000 automobiles within the United States and Canada within the second quarter, which is 9 percent more than the first quarter and 39 percent a lot more than exact same period a year ago. It plans to introduce new models later this year with the aim to capture a bigger piece of the growing market for smaller, more fuel efficient cars. Ford fans should probably be getting auto financing here in the near future for new versions of the Fiesta and Focus, plus a retooled Edge crossover and a more fuel efficient Explorer SUV.
Ford Stock and an analysis
The Ford stock has increased more than 40 percent in 2010 if you analyze stock. Ford's market share in the United States rose up to 16.6 percent within the first quarter, which seems to be up 2.7 percent from the first quarter 2009. It outsold General Motors in February for the very first time in 50 years. In addition to draconian cost cutting and increased focus on quality, Ford’s gamble to forgo the government bailout seems to have paid off in spades as the images, and sales, of GM and Chrysler have suffered. Toyota’s recall of a lot more than nine million autos and also the resulting 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 company doesn’t necessarily expect each of the next three quarters to be as strong as the first, particularly if an improving economy leads to higher interest rates later within the year. As if on cue, Ford stock was falling Tuesday after the company’s earnings report was released. At noon Eastern time, Ford stock was already down about 6.5 percent at $ 13.50 per share. Given that January 2005, Monday's closing price on stock was the highest. Debt survival might be an issue in the Ford stock outlook. The company still has much more debt $ 34.3 billion, than cash, $ 25.3 billion.
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