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Description:  Ford Motor Co. (F) reported a 69% jump in third-quarter earnings Tuesday, marking five straight quarterly profits for the resurgent auto giant as it moves to slash debt and meet pension obligations. In addition, Ford said it would pay down $2 billion of debt and use cash to fully prepay the remaining $3.6 billion of debt owed to a health-care trust for retirees.Ford also said it has launched a tender offer for about $2.6 billion in convertible notes, offering a cash premium to encourage holders to convert the debt into common stock.

Date: 10/26/2010


Questions for discussion:

  • Summarize the financials reported at Ford.
  • What is your assessment of these metrics from the point of view of an investor
  • How would you expect management of the firm to view these results?

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