Blog: Ford shocker - Q2 profit!
Dave Leggett | 26 July 2007
There's a surprise. News is just coming through that Ford posted a Q2 profit, rather than the expected loss. An eighth consecutive quarterly loss was widely predicted. We're still digesting, but it looks initially way better than the analysts were predicting. There were special items having a positive impact, but even without them Ford was still in the black.
Mark Fields' position will be strengthened and, even if Volvo Car is potentially still for sale, maybe the odds on it leaving have just lengthened a little. The 'strategic review' for Volvo runs for the remainder of the year. The only significant news on Jaguar-LR appears to be that they'll be sold together as a package - which was largely expected anyway.
This result, along with the generally good things being said lately about Ford's US product offerings, looks like a major boost for Ford and at least gives the company's management a bit of breathing room and lessens the sense of being in crisis mode. The US results are still not good, but the trend is in the right direction and the results overall are good. Ford even got the better of Wall Street's best estimates.
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