Continued growth has helped the Ford Motor Company post a $2.1 billion profit in first quarter of 2010. Compared to the same period last year, the results mark a $3.5 billion improvement thanks to strong new products and successful cost-cutting.
With the highest quarterly pre-tax operating profit in six years, Ford has certainly come a long way. In addition to recently offering many all-new or updated products, Ford has seen higher profits at Ford Credit, and the company has also seen positive results from aggressive costs cutting initiatives. Among the these initiatives was the recent sale of Volvo to Zhejiang Geely Holding Group for $1.8 billion.
“The Ford team around the world achieved another very solid quarter, and we are delivering profitable growth,” said Ford President and CEO Alan Mulally. “Our plan is working, and the basic engine that drives our business results – products, market share, revenue and cost structure – is performing stronger each quarter, even as the economy and vehicle demand remain relatively soft.”
According to Ford, revenue was up $3.7 billion from the same period a year ago to $28.1 billion. Volvo’s 2010 results were not included in its quarterly reporting.
“We are seeing the benefits of our One Ford plan around the world,” said Lewis Booth, Ford executive vice president and chief financial officer. “All of our business operations – North America, South America, Europe, Asia Pacific Africa and Ford Credit – were not only profitable, but also showed substantially improved results over a year ago.”
With Ford’s current performance, and the economy gradually strengthening, Ford is expected to to deliver solid profits this year along with maintaining healthy cash flow.
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