Alan Mulally, Ford Motor's chief executive officer, told CNBC’s “Power Lunch” that the company is on track to make a profit in 2009.
Ford’s loss from continuing operations, excluding one-time items, was 9 cents a share. Wall Street analysts expected the company to lose 60 cents a share in the first quarter. Revenue increased to $43 billion from $40.8 billion in the same period a year ago.
“We’re very encouraged and pleased with the results because they clearly show that our plan is on track to turn around this great company,” Mulally said.
He said cutting costs is just the first step of the planned turnaround.
“The second part of the strategy was is accelerate the development of new cars and trucks so we have a complete portfolio of cars and trucks,” Mulally said. “We will have 70% of our entire family of cars and trucks refreshed by 2008 and by 2010 we will have 100% refreshed. So, we believe that we’re making the cars and trucks now that people are going to value.”
He said Ford is cutting back on low-profit fleet sales and expects the company’s worldwide market share to stabilize at 14% to 15%.
“We believe we’re on plan to make a profit in 2009,” Mulally said.