Ford manages Q2 profit rise despite tough market

Ford, the US carmaker, has managed to return a $2.26bn (£1.37bn) profit in the second quarter of the year, while its rivals have been forced into bankruptcy.

Ford

However, the positive result was largely attributed to one-off financial gains from debt restructuring. Excluding the gain it made an operating loss of $424m (£256.5m).

Ford chief executive Alan Mulally says while the global business environment remains “extremely challenging” it has made “significant progress” under its restructuring strategy.

“Our 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,” he says.

As one of the “Big Three” US carmakers, it has managed not to follow General Motors and Chrysler into bankruptcy. But its restructuring programme has seen it slash tens of thousands of jobs and shut down factories in a bid to reduce costs.

Ford says at this stage it should be on target to at least break even in 2011.

Meanwhile, GM US recently emerged out of Chapter 11 bankruptcy to form a new company. It will axe the Saturn, Saab, Hummer and Pontiac brands.

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