On Friday, Ford will show something it didn’t have for a long time: Money, and lots of it. The Freep thinks that Ford will report a profit for 2010 of about $8 billion excluding onetime charges. That would be the biggest annual profit Ford saw in a decade.
And what’s that nasty “one time charge?” It will be $960 million, resulting from the elimination of about $1.9 billion in debt. Even with the charge, $7b in cash is nothing to sneeze at. Ford will be able to hold on to that money, the taxman will have to wait until the loss carry-forwards (Ford lost $30 billion from 2006 to 2008 alone) are used up. Ford expects to finish the year with more cash on hand than its remaining $21 billion in automotive debt.
However, there is danger ahead. Ford’s labor contract with the UAW expires in September. And they will want some of that profit.