Ford Posts $424 Million Q2 Loss, Burns a Billion Bucks
Huzzahs will greet Ford’s execs this morning, as The Blue Oval Boyz didn’t lose as much as they could have, and didn’t burn as much of their cash pile as they could have. More specifically, the DOE loan-taking American automaker reported a $424 million pre-tax operating loss on net income of $2.3 billion. (“Special items” created a net gain of $2.8 billion, including a $3.4 billion gain via debt-reduction.) The automaker ended the second quarter with “Automotive gross cash” of $21 billion. That means Ford’s “operating-related cash outflow” (i.e., cash burn) was $1 billion. Before the results, Ford CFO Lewis Booth claimed Ford was “certainly confident of getting through this year” with sufficient cash. True dat. Meanwhile, business sucks: Ford’s second quarter revenues clocked-in at $27.2 billion, down $11 billion from the same period a year ago. [ Ford financials here.]
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Ford to GM and Chriat; 'yeah, we're screwed, but we're not as screwed as you guys are! Party at Edsel's house!
hi , You can’t really believe that….do you? That sounds about as likely as trickle down economics being true. I was not in favor of any of the bailouts either, but there will be no recovery for quite some time. Way too many people have spent years of future earnings…those people are not going to be spending discretionary dollars for a long time.