Text size [+][-] Wednesday November 19 2008GLOBAL EDITION
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By Richard Beales
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Ford Motor said on April 24 it had made $100m in the first quarter, surprising analysts who had expected a loss. Ford cited "significant progress made on our plan to aggressively restructure to operate profitably". Alan Mulally, president and chief executive, said Ford remained committed to its goal of North American and overall profitability in car manufacturing in 2009, "despite the challenging economic conditions." General Motors is expected to report first-quarter earnings next week. Ford CDS spreads fell below those for GM starting on April 8 and have remained there, according to Markit - the first time this has happened since June 2006, except for a very small switch for just two days at the volatile height of the credit market turmoil last August. On April 23, the annual premium on five-year CDS protection for Ford Motor debt stood at 9.25 percentage points, against 9.41 percentage points for GM.
richard.beales@breakingviews.com