More Good News From Detroit
Posted by Carl Doerksen on Wed, Feb 03, 2010 @ 10:14 AM
Last week we posted a discussion about how automakers are planning to begin hiring in 2010. Now we have more good news from Detroit!
According to the LA Times, Ford Motor Co. posted a profit of $2.7 billion for 2009, a dramatic turnaround for the company, which weathered one of the worst years in the history of the automotive industry in comparatively good health.
"While we still face significant business environment challenges ahead, 2009 was a pivotal year for Ford and the strongest proof yet" of the success of the company's effort to forge "a path toward profitable growth by working together as one team, leveraging our global scale," Alan Mulally, Ford's chief executive, said.
In the U.S., sales of Ford brands in the fourth quarter rose 13% from the same period a year earlier. The company grabbed 15.3% of the U.S. auto market, its first full-year gain since 1995.
"In every part of the world, we are providing customers with great products, building a stronger business and contributing to a better world," Mulally said. "Our progress has helped us gain market share in most of our major markets."
Ford's profit, announced prior to the opening of the stock market, amounted to 86 cents per share and compared to a loss of $14.8 billion, or $6.50, in 2008.
Though he expects Ford to be profitable this year, Mulally warns that the economy remains uncertain. "Global economic conditions are reviving but remain fragile," he said.
As we indicated last week, news like this from automakers could be a leading economic indicator. More and more analysts are expecting economic recovery in 2010. If this prediction holds true, we are also expecting an increase in M&A activity to follow suit. As we have discussed before, the first and second years following economic recovery are usually the strongest for M&A growth in any economic recovery cycle. Pent up demand, coupled with significant capital available to invest on the part of both strategic buyers and equity groups, could make this especially true in 2010.
This year might be a great time to dust off your exit plans and update them. And if you don't have an exit plan in place, 2010 could be the year that you need to create one. Having survived the worst recession since the 1930s, do you want to continue risking your entire net worth in a highly illiquid investment?
The March Group holds free informational workshops on the vital steps you need to take to create an actionable exit plan. Contact us so we can reserve a place for you in one. Based on our two decades of experience, we believe that it is vital that you can begin the critical process of developing your exit plan in order to take advantage of the next M&A recovery cycle.