Ford Posts $424 Million Q2 Loss, Burns a Billion Bucks

by Robert Farago

Published: July 23rd, 2009

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.]

Robert Farago

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4 of 32 comments

Panzerfaust on Jul 23, 2009

Ford to GM and Chriat; 'yeah, we're screwed, but we're not as screwed as you guys are! Party at Edsel's house!

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Quasimondo on Jul 23, 2009
It’s also normal and OK that laid off workers in an obsolete industry have to find work in a new industry. If it hadn’t been this way, you and me would be hunting and farming now, instead of typing to a computer. This time around there is no new industry ready to pop up and employ workers no longer in the auto industry. The longtime decline of manufacturing in the U.S. has seen to that. It is one of the symptoms of a jobless recovery (an oxymoron if I've ever heard one).

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Golden2husky on Jul 23, 2009
If certain zombies hadn’t been bailed out, we probably have already been fully recovered.... 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. Ford will rebound as long as their products continue to improve the way they have been and they get accolades from the toaster testers at Consumers. Funny how influential that magazine is... Ford really need to market better though. EDIT: It is one of the symptoms of a jobless recovery (an oxymoron if I’ve ever heard one). Well, that's what we had in the past...fat cats fatter, more average people out of work.

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Moremony on Jul 24, 2009

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.

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