Ford Posts Strong Q2 Results

American manufacturer Ford posted yesterday its financial results for the second quarter of the year, proving once again the One Ford approach is paying off. The American carmaker says it reached a net income of $2.6 billion and a pre-tax operating profit which amounted to $2.9 billion, higher than the result reported for the same period last year and a good sign it will end the year higher than it did 2009.

“We delivered a very strong second quarter and first half of 2010 and are ahead of where we thought we would be despite the still-challenging business conditions,” Alan Mulally, Ford CEO said when announcing the results.

“We remain on track to deliver solid profits and positive Automotive operating-related cash flow for 2010, and we expect even better financial results in 2011."

The results are the best for a quarter reported since 2004. The carmaker's debt was reduced $7 billion since the first quarter, reaching $27.3 billion, while the company's gross cash amounted to $21.9 billion, down $3.4 billion.

In the second quarter, Ford announced investments in its operations in Thailand, Argentina and the US. It also discontinued the Mercury brand and created the framework for the release of its line of electric vehicles.

The achievements of this period allows Ford to look ahead with confidence. The carmaker predicts an increase in production for Q3 compared to the same period last year and, overall, a better financial health than it predicted.

“Our progress is being led by the strength of our new products and our leaner, global structure,” Mulally added. “Customers are responding to our strongest ever product lineup – a full family of vehicles with world-class quality, fuel efficiency, safety, smart design and value.”