FORD MOTOR CO Quarterly Report for Q3 Ended Sep 30, 2009

Summary

Ford Motor Company (F) reported a significant turnaround in the third quarter of 2009, demonstrating a substantial improvement in financial performance compared to the same period in the prior year. The company achieved a net income of $997 million, or $0.29 per diluted share, a stark contrast to the net loss of $161 million, or $0.07 per share, reported in Q3 2008. This improvement was driven by a recovery in both the Automotive and Financial Services sectors. The Automotive sector's pre-tax income turned positive at $545 million from a loss of $732 million, largely due to favorable net pricing and cost improvements. The Financial Services sector also saw a considerable boost in pre-tax income, reaching $670 million compared to $159 million in the prior year, primarily attributed to lower depreciation on leased vehicles and a reduced provision for credit losses.

Key Highlights

• 1Ford Motor Company reported a net income of $997 million for Q3 2009, a significant improvement from a net loss of $161 million in Q3 2008.
• 2Diluted earnings per share were $0.29, compared to a loss of $0.07 in the prior year's quarter.
• 3The Automotive sector turned profitable, reporting $545 million in pre-tax income versus a $732 million loss in Q3 2008.
• 4The Financial Services sector's pre-tax income increased to $670 million from $159 million in Q3 2008.
• 5Total company sales and revenues for the third quarter were $30.89 billion, a slight decrease from $31.75 billion in the prior year's quarter.
• 6Ford's cash and cash equivalents, along with marketable securities, stood at $48.3 billion as of September 30, 2009, an increase from $39.5 billion at December 31, 2008, indicating improved liquidity.
• 7The company announced its intention to issue $2.5 billion in Senior Convertible Notes due 2016, signaling proactive capital management.

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