Ford shareholders gained some good news in a quarterly report, followed by bad news from Wall Street Monday, but the overall status of the company seems to be favorable.
The company reported first quarter earnings per share of 50 cents, on $2.1 billion in profit. The company website reported $28.1 billion in overall revenues for the first quarter.
“Our plan is working, and the basic engine that drives our business results-products, market share, revenue and cost structure-is performing stronger each quarter, even as the economy and vehicle demand remain relatively soft,” said Ford President and CEO Alan Mulally in press release.
Wall Street analysts say that the company is doing well and should continue to gain steady profits through 2010. There is a possibility that changes in material prices could affect the course of its production, but not significantly.
“Based on Ford’s improving performance, the gradually strengthening economy, and its present assumptions, Ford now expects to deliver solid profits this year with positive Automotive operating-related cash flow,” read Ford’s business update.
The good news surrounding Ford’s stock was dampened by a poor stock performance on Wall Street Tuesday. Ford stock dropped from Monday’s $14.46 to $13.87 on Tuesday afternoon.
Ford is implementing its "One Ford" initiative designed to have different branches of Ford around the world achieve synergy. Other major Ford subsidiaries are located in South America, Europe, and the Asia Pacific. The car business in Europe was described on the company website as “weak” and listed under "Risk Factors" that could hinder the company’s overall financial profits for later in the year.
Ford recently won an award for Best Concept at the 2010 Beijing Auto Show for its design of the Ford Start. The Start is a compact car that runs on a 1.0-liter turbocharged I3 EcoBoost engine that has been reported by the company as putting out the same power as a four-cylinder engine.