This should speak volumes:
The Ford Motor Company reported net income of $2.7 billion in 2009, its first full-year profit since 2005. The automaker lost $14.7 billion in 2008. Executives said they now expect the company to remain profitable — at least on a pre-tax basis — in 2010 and 2011.
Although Ford’s revenues were down for the year, to $118.3 billion from $138.1 billion, it nearly doubled its cash reserves to $25.5 billion at year-end, reflecting the company’s success at controlling costs and improving margins. However, Ford’s debt remains a hefty $34.3 billion.
Business has been on the upswing around the globe. Ford was profitable in every region, including North America, and worldwide revenues in the fourth quarter rose to $35.4 billion, from $29.0 billion a year earlier.
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Inside Line says: Ford’s turnaround is even more remarkable considering that it didn’t file bankruptcy, as did its crosstown rivals, nor did it require a massive taxpayer-funded bailout.
The question here is obvious… what can those car companies who needed bailouts from we taxpayers learn from Ford?
MarketWatch gives us clues:
Kip Penniman, fixed-income analyst for KDP Advisor, said the report was better than he had expected — particularly with regard to Ford’s operating cash flow.
“We continue to be impressed with CEO Mulally’s aggressive efforts to restructure Ford, reduce costs, and drive product improvements,” he said. “We believe the investment community will turn its attention to Ford’s efforts to right-size its balance sheet.
Interesting… no mention of government handouts.
Crossposted(*).
