Ford is making money
Ford just posted huge profits -- from
Bloomberg:
Ford Raising $3.3 Billion, Paying Down Credit Line
Ford Motor Co., after posting a surprise third-quarter net profit, said it is raising as much as $3.3 billion, while paying down and pushing back the maturity of a $10.7 billion line of credit to strengthen its balance sheet.
Ford said it is seeking to pay down 25 percent of the revolver and move back by two years, to 2013, the maturity of the remaining $8 billion liability. Ford also said it is offering as much as $2.3 billion in senior notes that can be converted to common stock or cash in 2016.
Ford also in December will offer as much as $1 billion in common shares through broker-dealers.
�We expect the moves will enhance Ford�s automotive liquidity and over time reduce the company�s debt burden, providing an additional cushion given the still uncertain state of the economy,� Ford Chief Executive Officer Alan Mulally said in a statement. Earlier in the day, it announced a surprise $997 million third-quarter profit.
And why does Ford seem to ring a bell -- oh yeah:
Ford, the only major U.S. automaker to avoid bankruptcy, is seeking to reduce a debt load larger than those of General Motors Co. and Chrysler Group LLC, which shed liabilities in reorganization. GM�s liabilities will be $22.3 billion in 2011, while Ford�s will total $38.1 billion, Barclays Capital auto analyst Brian Johnson said in an Oct. 20 research note.
They were the only US carmaker to refuse government bail-out. Instead, although they had a debt bigger than GM and Chrysler, they were able to recover and come out ahead. Now they are building a cushion to further protect themselves from any financial downturns. Sounds like they have an excellent President and a great product.
I had some bad experiences with Ford products back in the 1980's so have avoided them since but I think it is time to give them another look...
and it is the only US car builder that was not bailed out by the Federal Government.
Posted by DaveH at November 2, 2009 6:25 PM