Ford On the Road to Recovery: Barron’s (F)

Ford Motor Company F has announced impressive quarterly results. The company announced a 17% increase in its revenue to $31.3 billion. It also beat market estimates by posting 68 cents earnings per share. The markets were expecting the company to announce its EPS at 40 cents apiece. Ford’s automotive unit earned $2.1 billion in pretax earnings, compared with a loss of $1.1 billion a year earlier. Barron’s has stated that there is an upside to the company’s stock. The company is expecting its total domestic sales to be between 11.5 million and 12 million units. Morningstar’s David Whiston said that the US auto market is likely to recover to 15 million to 19 million units in the coming years. The auto company has also increased its market share from 15.5% a year ago to 17%. Although the company has improved its asset position, it is still carrying $27.3 billion worth of debt. During the year, it reduced $7 billion in debts, which helped it reduce its interest costs by $470 million a year. The company’s financial unit, Ford Credit, is also doing well. It improved its operating profits by 37%.