See, this is the kind of crap I’m talking about, economically speaking. Check out the incredible financial doublespeak in this thing…
Ford Motor Co. surprised Wall Street Thursday with second-quarter earnings of $750 million, its first profitable quarter in two years.
The company also confirmed it is exploring the sale of its Jaguar and Land Rover subsidiaries and said its U.S. market share rose during the quarter.
The profit of 31 cents per share compares with a net loss of $317 million, or 17 cents per share, in the same quarter of last year.
The company attributed the gains to significant year-over-year improvement in all of its automotive operations, and to cost reductions — including job cuts — due to restructuring and positive special items that totaled $443 million. That includes a $206 million gain related to sale of its Aston Martin unit. Even its struggling North American division showed progress.
Ford has shed 27,000 hourly and about 10,000 salaried jobs since September 2006 through early retirement and buyout offers as it tries to shrink itself to match lower demand for its cars and trucks.
This is exactly what I mean by my post about the economy. It’s all smoke and mirrors, folks. The profit numbers are supposed to make it look like Ford has turned the corner and golly gosh, it’s just all gonna be okay…
But look more closely. The buyouts and early retirements happened previously. Because they post profits by quarter, lost in the rhetoric is the fact that they lost a bunch of money on the front end, and they’ve lost 37,000 workers. Apparently, there is no thought at Ford about possibly building more vehicles and increasing revenues, because 37,000 workers might come in handy for that, you know?
This is an example of the smoke and mirrors I’m talking about. American business isn’t about building and selling more and competing, it’s about lopping off expenses and claiming a better bottom line, when it’s the TOP line that drives the economy.
Oh, well, they can always move to the South and make cars for Toyota and Honda, right? They’re both doing fine here…