Ford Motor Co. is expected to report an annual profit for 2010 that would be its highest since 2000. It’s believed to be boosted by the release of new models and the improvement of its reputation.
This would also mark the second straight profitable year for Ford with CEO Alan Mulally at the helm. According to an analyst survey conducted by Thomson Reuters, Ford will generate a fourth-quarter pretax profit of about 48 cents a share on revenue of $30.57 billion.
On this basis, Ford would post profits of about $1.7 billion for the fourth quarter and $8 billion for all of 2010. Ford reported $6.37 billion in net income for the first nine months of the year, its highest since 1998 and bigger than any other automaker.
In comparison, Ford posted annual net income of $2.72 billion on revenue of $118.31 billion in 2009. Gary Bradshaw, a fund manager at Dallas-based Hodges Capital Management, which owns 100,000 Ford common shares and 100,000 preferred shares, said that Ford is producing “better cars” that are more fuel efficient.
He said that Ford has been “really focused” on quality ever since Mulally led the company. Bradshaw said that Mulally is successful at making Ford a “money machine.”
The estimates for quarterly and 2010 profit do not include items such as a $960 million charge Ford aimed to take in the fourth quarter due to a plan to pay investors in its convertible debt to swap their notes for shares. Profit excluding items was 9 cents a share in 2009. [via autonews - sub. required]