Ford Motor Company is back in profit for its second quarter, despite falling behind on its cost-cutting scheme.
Attributing the results to increased production in North America, the auto giant posted net income of $570 million (€566m; £363m), up from a loss of $752m in Q2 2001. Revenues rose marginally from $42.31 billion to $42.33bn
Ford announced a major overhaul of its operations at the start of the year [WAMN: 14-Jan-02], but has already slipped six months behind its cost-cutting schedule according to chief financial officer Allan Gilmour.
The results were hailed as “a step forward” by Gilmour, though he added: “Returning Ford to sustained profitability will take a lot more steps and at a faster pace.”
Further cost-cutting may not be easy in the US, where Ford is engaged in an incentives battle with rival automakers. Its American marketing spend rose from 14.1% of gross revenue in the second quarter last year to 15.6%, and executives expect it to remain around this level for the rest of the year.
Data sourced from: The Wall Street Journal Online; additional content by WARC staff