New Car Review Ford Surprises With Second-Quarter Profit

Ford Motor Company surprised Wall Street analysts, reversing a string of six quarterly losses with a profit of $750 million in the second quarter. The sale of Aston Martin earlier this year swelled the bottom line by nearly $500 million. Excluding that "special item," the company earned $258 million on continuing operations, including a pretax profit of $112 million at its Ford Credit financing arm.

A year ago, Ford lost $317 million in the second quarter. Revenue for the quarter totaled $44 billion, up 6 percent from the same period in 2006, despite lower unit sales. Ford attributed the increase to currency exchange rates, a richer model mix, and "net pricing improvements."

The automaker said it recorded "significant year-over-year improvement [in] all automotive operations," thanks in part to ongoing cost reductions totaling $600 million in the quarter and $1.1 billion in the first half.

During the most recent financial crunch, Ford has been burning through cash at a furious rate, prompting the company last fall to establish a new credit line with its lenders. At the end of June, the company said it had access to more than $37 billion, including cash, loans and other assets.

As expected, Ford confirmed that it is pursuing the sale of Jaguar and Land Rover, adding that it is "conducting a strategic review of Volvo that likely will conclude prior to year-end."