Seemingly proving the old adage of having to spend money to make money, Ford’s net income for the second quarter of 2011 totaled $2.4 billion, some $201 million less than the same period last year. Why? Because the automaker spent more on materials and product development this time around.
Still, the net income represents a 59-cent per share profit, and also represents Ford’s ninth quarterly profit. Pre-tax operating profit was $2.9 billion, or 65 cents per share. Gross revenues were up $4.2 billion, amounting to a total of $35.5 billion. Efforts to curb losses in the automotive operations seem fruitful, as the automaker says it was able to reduce automotive debt by $2.6 billion.
End of quarter gross cash on hand was $22 billion, which is a $700 million improvement over the end of the first quarter of 2011. Gross cash exceeded debt by $8 billion at the end of the quarter, and up $6.6 billion improvement over the first half.
Ford’s first half 2011 net income totaled $4.9 billion, from a pre-tax income of $5.7 billion, and automotive cash flow for the half amounted to $4.5 billion.
Source: Ford Motor Company