By Chris Haak

01.28.2010

Proving that its multi-year turnaround plan has clearly taken root, Ford Motor Company reported final 2009 net income of $2.7 billion, including a gain of $868 million for the fourth quarter of 2009.  These numbers compare favorably, obviously, to the $14.8 billion loss for 2008 and the $5.9 billion loss for Q4 2008.

Furthermore, Ford CFO Lewis Booth raised the company’s earnings projections for 2010 and 2011.  During the middle of 2009, Ford had forecast that it would be “break-even or better” in 2011, and three months ago, raised the 2011 forecast to “solidly profitable.”  Now, Booth is forecasting a profitable 2010 as well.

Ford ended 2009 with with $25.5 billion in automotive gross cash and $34.3 billion in automotive debt.  The debt load is reduced from prior-year levels thanks to debt restructuring that Ford tackled during 2009, but about double the level that GM has after GM’s “quick rinse” bankruptcy.  In comments to reporters, Booth noted that Ford’s balance sheet still needs more work, but he is obviously very much aware of the situation that it puts Ford in relative to its competitors with relatively clean balance sheets. Continue Reading →