Ford boosts liquidity by $1 billion in Q2; automotive debt ticks up

By Lisa Kerner

Charlotte, N.C., July 25 - Ford Motor Co. announced it ended the second quarter with $33.9 billion of total automotive liquidity, an increase of $1 billion compared with the first quarter of 2012.

Automotive debt for the quarter was up at $14.2 billion, from $13.7 billion at the end of the first quarter, due to drawdowns of low-cost loans for the development of advanced vehicle technologies, a company news release said.

Ford will make the last draw on the loans by August; repayment of the loans begins in September.

Automotive gross cash exceeded debt by $9.5 billion at the end of the second quarter, a net cash increase of $200 million during the quarter.

Ford paid $800 million to its worldwide funded pension plans as part of a long-term strategy to de-risk the plans.

Second-quarter dividends totaled about $200 million.

Net income for the period was $1 billion, or 26 cents per share, a decrease of $1.4 billion from second quarter 2011. The decrease was attributed to lower operating results except for Ford North America and higher tax expense.

The Dearborn, Mich.-based domestic carmaker said it expects full year total company pre-tax operating profit to be strong, but lower than 2011, with positive automotive operating-related cash flow.

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