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Ford Turnaround Plan Pays Off

By J. Kelman,  Newser User

Posted Apr 26, 2007 10:59 AM CDT

(Newser) – A loss is a win for Ford this morning, as the company's shares soared nearly 10% on smaller-than-expected first-quarter losses. Investors see the $282 million net loss—down from $1.4 billion in first quarter 2006—as a sign the company's ambitious turnaround plan is on track.

CEO Alan Mullaly has led a massive restructuring effort—cutting jobs, closing plants, and revamping the company's most popular lines—that is apparently starting to reap benefits. Revenue went up nearly 5%, even as sales volume fell, thanks in part to record profits at Ford's luxury group, which manages Jaguar, Land Rover and Volvo.

Chicago Holds Annual Auto Show
Chicago Holds Annual Auto Show   (Getty Images)
Ford F-250 pickup trucks sit on the lot beneath the blue oval at a Ford dealership in the south Denver suburb of Littleton, Colo., on Sunday, April 22, 2007.   Ford Motor Co. on Thursday, April 26, 2007,  posted a first-quarter net loss of $282 million, a vast improvement over the...
Ford F-250 pickup trucks sit on the lot beneath the blue oval at a Ford dealership in the south Denver suburb of Littleton, Colo., on Sunday, April 22, 2007. Ford Motor Co. on Thursday, April 26, 2007,...   (Associated Press)
The blue Ford oval is seen on the grille of a new truck for sale at Hayward Ford Wednesday, April 25, 2007, in Hayward, Calif.  Ford Motor Co. on Thursday posted a first-quarter net loss of $282 million, a vast improvement over the $1.4 billion it lost in the...
The blue Ford oval is seen on the grille of a new truck for sale at Hayward Ford Wednesday, April 25, 2007, in Hayward, Calif. Ford Motor Co. on Thursday posted a first-quarter net loss of $282 million,...   (Associated Press)
A Ford pickup truck is seen for sale at Hayward Ford on Wednesday, April 25, 2007, in Hayward, Calif.  Ford Motor Co. on Thursday posted a first-quarter net loss of $282 million, a vast improvement over the $1.4 billion it lost in the first quarter of 2006. (AP Photo/Ben...
A Ford pickup truck is seen for sale at Hayward Ford on Wednesday, April 25, 2007, in Hayward, Calif. Ford Motor Co. on Thursday posted a first-quarter net loss of $282 million, a vast improvement over...   (Associated Press)
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