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CHICAGO: Struggling Ford Motor Co. stunned analysts Thursday with a surprise second-quarter profit of US$750 million, helped by improving global operations and the divestment of its Aston Martin brand.
Even accounting for special factors, the results were far ahead of Wall Street expectations for the second-largest US auto company to remain in the red after a record US$12.7 billion loss in 2006.
The second-quarter results show Ford swung to profit after a loss of US$317 million in the same period a year ago and a US$282 million loss in the first quarter of 2007.
Excluding special items including the Aston Martin sale, Ford still had a global profit of 13 cents a share, an astonishing result in view of the Wall Street consensus view for a loss of 31 cents per share.
Ford's second-quarter revenue was US$44.2 billion, up from US$41.9 billion a year ago, with a weak dollar and higher pricing offsetting lower volume car sales.
Ford noted that it is "exploring in greater detail" the likely sales of its Jaguar and Land Rover nameplates and "is in discussions with selected parties who have expressed interest."
It also acknowledged "a strategic review of Volvo that likely will conclude prior to year-end."
The surprising results offered a glimmer of hope to a company and sector that has been mired in losses and with bleak prospects.
Ford said its cost-savings program trimmed US$600 million from expenses in the second quarter and US$1.1 billion in the first six months of the year.
Globally, automotive operations accounted for a profit of US$378 million in the second quarter. But North America still had a loss of US$279 million, down from US$789 million in the same period a year ago.
Ford said it got a lift from its new Edge sport utility vehicle, which has become the top seller in its segment.
The overall profit included US$443 million realised from the sale of Aston Martin, the British sportscar maker.
"We continue to focus on the four priorities of our plan - restructuring the business to operate profitably, accelerating the development of new products that our customers want and value, funding our plan and improving our balance sheet, and working even more effectively together as one global Ford team, leveraging our assets," said Ford president and chief executive Alan Mulally.
"Our team is very encouraged by the significant progress we are making. We recognise the challenges that lie ahead and remain fully committed to delivering our plan."
- AFP/yy
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