Ford posts nearly $1B profit: Good sign, but don’t celebrate yet

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The Detroit Free Press reports today:

After closing more than 10 plants and slashing 45% of its workforce in its long ailing North American division since 2006, the Dearborn-based automaker today reported net income of $997 million, or 29 cents per share, compared with a net loss of $161 million, or 7 cents per share, a year ago.

Even the company’s long-struggling North American division reported a pretax operating profit of $357 million — its first profitable quarter since the first quarter of 2005. The company improved its cash position by $2.8 billion, ending the quarter with $23.8 billion in cash.

via Ford sees bright future, posts nearly $1B profit | freep.com | Detroit Free Press.

But, as Tom Walsh, the Freep’s own columnist, notes, “businesses in these capitalist United States are supposed to make profits. Profits should be the norm, not an occasion for great surprise and undue exuberance.” In other words, let’s not get too ahead of ourselves: after 17 consecutive losing quarters, a single profitable one is a good sign, but not quite a trend.

I don’t think Walsh is merely being a downer. The American auto industry has demonstrated nothing if not complacency over the years. Let’s hope Ford stays vigilant.