Ford Surprises With $1B Profit; Sees More in '11

Ford to raise $3.3 billion in stock, debt sales.

The Associated Press
WFLS News

Date published: 11/3/2009

DEARBORN, Mich. (AP) - Ford Motor Co. says it will ask its lenders for extra time to repay at least some of the $10.1 billion borrowed under a line of credit, and will sell about $3.3 billion in stock and convertible debt to raise more cash.

Ford President and CEO Alan Mulally says over time the moves will "reduce the company's debt burden, providing an additional cushion given the still uncertain state of the economy." The news came after Ford, the only Detroit automaker to dodge direct government aid and bankruptcy court, reported a surprise quarterly profit of nearly $1 billion and said it will be profitable by 2011.

Ford says it will pay down 25 percent of the revolving credit line and is offering higher interest and fees on its remaining debt if lenders would agree to push back the date the credit line is due by two years to Nov. 30, 2013.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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Date published: 11/3/2009