A debt-restructuring action that poured $3.4 billion intoMotor Co. coffers offset sagging second-quarter revenue and returned the auto maker to profitability for the first time since early 2008.
reports a net income of $2.3 billion, an $11 billion swing from like-2008â€™s net loss of $8.7 billion. The auto makerâ€™s last positive result was first-quarter 2008â€™s $100 million tally.
Ford reports a pre-tax operating loss of $424 million, excluding special items. But this compares favorably with prior-yearâ€™s $1 billion shortfall.
Fordâ€™s second-quarter revenue totaled $27.2 billion, down $11 billion from year-ago.
â€śOur underlying business is growing progressively stronger as we introduce great new products that customers want and value, while continuing to aggressively restructure our business and strengthen our balance sheet,â€ť CEO and President Alan Mulally says in a statement.
The auto maker says it expects to meet or exceed its 2009 financial targets and â€śmost of its operational metrics.â€ť
Ford anticipates full-year market-share improvement in the U.S. and Europe compared with 2008.
The auto makerâ€™s automotive business recorded a second-quarter pre-tax operating loss of $1 billion, exceeding like-2008â€™s $699 million shortfall. Ford blames lower industry volumes, inventory-reduction measures, rising material costs and unfavorable exchange rates.
Total vehicle sales were 1,172,000, compared with 1,562,000 in second-quarter 2008.
However, labor-cost reductions in North America and Europe are credited with saving the auto maker $1.1 billion in manufacturing and engineering expenses.
Automotive operations in North America lost $851 million, pre-tax. But this represents a $2.2 billion swing from prior-yearâ€™s $1.3 billion loss.
Fordâ€™s automotive operations in Asia Pacific and Africa lost $25 million, a sharp turnaround from like 2008â€™s $50 million profit.
Europe and South America recorded pre-tax profits of $138 million and $86 million, respectively. But both totals were down from like-2008.
Europe was $582 million in the black last year, while South America raked in $388 million.
Reduced volumes was a factor in both regions.
However, Ford notes some positive momentum. The auto maker recorded share increases in the North American market, while in June, the Ford brand topped Canadian-market sales for the first time in more than 50 years
Meanwhile, Fordâ€™s total sales in China rose 39% in the second quarter and the all-new Ford Fiesta B-car rose to second place among Europeâ€™s best-selling nameplates.