Ford drives home biggest first-quarter profit in 13 years
Nowadays FORD Company is increasing their profits in a huge way. The company reported a net income of $2.6bn (£1.6bn), or 61 cents a share, compared with $2.09bn, or 50 cents a share, during the same period a year earlier. Revenue rose to $33.1bn, up from $28.1bn in 2010. These profits are because FORD is making new ‘greener’ cars, with the changing in recent laws about ecology; they are creating competitive and small cars that spend less petrol than other cars of other companies like Honda, Peugeot, Seat, Volkswagen , etc. Also the increase in the price of petrol is helping that consumers when they have to choose one car to buy, they decide which spends less petrol and also the cheaper. New cars here in Spain like for example Ford Fiesta or Ford Focus are having a nice position between young people elections.
FORD is increasing their sales not only in USA, also in Africa and Asia they are increasing profits but the amazing thing is that in Europe profits have increased more than the double, is a huge achievement for the company!
Allan Mullay the Ford President and chief executive is really happy with these results and also with the excellent work of their employees, with a solid growth and with improvements in all regions.
Finally these profits arrive in a perfect moment for the company to cut their big debt and help to pass this difficult crisis.
Source: http://www.guardian.co.uk/business/2011/apr/26/ford-biggest-profit-13-years
Very well written Santi! No mistakes to worry about.
ResponderEliminarI think that one of the key reasons why Ford has gained such a great amount of net income is because they got rid of some other brands that they previously owned. For example, Ford sold Volvo to a Chinese car maker called Geely for $1.5 billion on August from 2010. They needed to get rid of Volvo because the carmaker was losing money every year, the last time Volvo made an annual profit was in 2005. With this move Ford exited the European luxury lines, so they could focus on its own brand.
ResponderEliminarFord also sold Aston Martin to a group of investors led by former U.K. race car champion David Richards for an unknown amount of money in 2007. Later, in 2008, Ford sold Land Rover and Jaguar to Tata Motors, part of India’s fast growing Tata Group. The purchase price was $2.3 billion, about half of what Ford originally paid for them several years ago.
So in conclusion, selling these big brands were the key factor: they came apart with carmakers that reported losses, they got a nice amount of money in return, so they could invest in other things, and finally they could focus on its own brand.