Four Things Ford Motor Company (NYSE:F) Quarterly Results Tell Us - MSFT, GM

Denver, CO, 10/28/2013 (Avauncer.com) – The market is discussing the good quarterly results declared by Ford Motor Company (NYSE:F). Revenues and profits were up on strong demand and good performance by the company. The trend is also expected to continue. Let us look at the other strong points the company shared in their conference call:

• The CEO is not leaving till at least 2014 end. This is very good news, as there were strong rumors that Allan Mulally had accepted the offer of Microsoft Corporation (NASDAQ:MSFT) and would be leaving the company. Allan is credited with the turnaround of the company from the financial mess of 2006 that all auto makers faced in America. He also did so without opting for the financial aid offered by the federal government. The turnaround strategy is giving results but still requires periodic tweaking that only Allan is capable of.
• Market Share: Ford has given a tough fight to General Motors Company (NYSE:GM) in the critical North American market. Though General Motors continues to dominate, Ford has managed to narrow down the gap. The market share of Ford increased from 15.2% to 15.8% in the first nine months. Coming on the heels of strong performance of its trucking business, Ford will continue to have a good run. Remember that the F-series is now the most popular truck in America and enjoys very strong demand.
• European Markets: The turnaround strategy in Europe also yielded results. Ford has adopted a two pronged strategy – cut costs by shutting unviable units, and rationalize labor and simultaneously increase market share. The company is expected to spend $1.2 billion on restructuring its operations. Employee lay-offs are expensive in Europe. The company also managed to increase its market share to 8%.
• Other Markets: Though late in Asia, Ford has been doing very well in China. Revenues were up by 51% and profits by 100%. The car market in China is estimated to reach 21.7 million by next year. Strong growth was also reported from South America.

These four signs point to a very steady and growing future for Ford.

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