Business News - Ford turns big profit, loses union vote

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Ford turns big profit, loses union vote

DEARBORN, Mich. (UPI) -- U.S. auto giant Ford Motor Co. said Monday it earned a profit of $997 million in the third quarter, a $1.2 billion rebound from the third quarter a year ago.

Ford lost $161 million in 2008's third quarter, CNNMoney.com reported Monday.

In the recent quarter, Ford capitalized on the Cash for Clunkers program, a federal rebate designed to help automakers weather the recession and car owners trade up in fuel efficiency. Ford also gained market share as U.S. rivals General Motors Co. and Chrysler Group struggled to emerge from bankruptcy proceedings.

"Our third quarter results clearly show that Ford is making tremendous progress despite the prolonged slump in the global economy," Ford President and Chief Executive Officer Alan Mulally said in a statement.

Revenues from auto sales in the third quarter hit $27.9 billion on the sale of 1.23 million vehicles, a 5 percent bump from a year ago.

Ford said it expected to be "solidly profitable" in 2011, although the Detroit News reported the company's union workers rejected a contract designed to bring Ford's labor costs more in line with GM and Chrysler.

"We still face a challenging road ahead," Mulally said, adding, "our transformation plan is working and our underlying business continues to grow stronger."

Copyright 2009 by United Press International

This news arrived on: 11/02/2009

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