modularf
Well-Known Member
REPORT: Wall Street rallies around better-than-expected Ford results
24 April 2009, 12:57 pm
Filed under: Car Buying, Trends, Ford, Earnings/Financials
On the surface, at least, news that a company lost $1.4 billion wouldn't normally be greeted as good news by Wall Street. However, the Ford Motor company's just-published quarterly earning reports have done just that, with the stock trading 15% ahead of yesterday and the entire Dow Jones stock market perking up at the news.
Why the positive reaction? The Blue Oval has fared markedly better than most analysts' estimates, and the size of the loss indicates that Ford is at least stemming its hemorrhaging. In further news that perked up trading, Lewis Booth, Ford's CFO reiterated that Ford expects to make it through the rest of the year without seeking any government monies, and the company notes that it expects to actually exceed the $4 billion cost-cutting goals it set for itself this year.
Of course, all is not rosy, although things are better than expected. For the first three months this year, Ford's sales dropped 43%, with accompanying revenue of $24.8 billion - a drop of almost 37 percent year-over-year versus 2008's $39.2 billion intake.
Perhaps the best news of all? Dearborn officials reinforced that the company is looking good to break even in 2011, noting that it could even post a profit before taxes. Thanks for the tips, everyone!
[Source: The Associated Press | Image: Jewel Samad/AFP/Getty]REPORT: Wall Street rallies around better-than-expected Ford results originally appeared on Autoblog on Fri, 24 Apr 2009 12:57:00 EST. Please see our terms for use of feeds.
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Source: Autoblog
24 April 2009, 12:57 pm
Filed under: Car Buying, Trends, Ford, Earnings/Financials
On the surface, at least, news that a company lost $1.4 billion wouldn't normally be greeted as good news by Wall Street. However, the Ford Motor company's just-published quarterly earning reports have done just that, with the stock trading 15% ahead of yesterday and the entire Dow Jones stock market perking up at the news.
Why the positive reaction? The Blue Oval has fared markedly better than most analysts' estimates, and the size of the loss indicates that Ford is at least stemming its hemorrhaging. In further news that perked up trading, Lewis Booth, Ford's CFO reiterated that Ford expects to make it through the rest of the year without seeking any government monies, and the company notes that it expects to actually exceed the $4 billion cost-cutting goals it set for itself this year.
Of course, all is not rosy, although things are better than expected. For the first three months this year, Ford's sales dropped 43%, with accompanying revenue of $24.8 billion - a drop of almost 37 percent year-over-year versus 2008's $39.2 billion intake.
Perhaps the best news of all? Dearborn officials reinforced that the company is looking good to break even in 2011, noting that it could even post a profit before taxes. Thanks for the tips, everyone!
[Source: The Associated Press | Image: Jewel Samad/AFP/Getty]REPORT: Wall Street rallies around better-than-expected Ford results originally appeared on Autoblog on Fri, 24 Apr 2009 12:57:00 EST. Please see our terms for use of feeds.
Permalink | Email this | Comments
Source: Autoblog