Ford earnings: Looking overseas and beating forecasts

Ford's (F) fortunes are based on its ability to get its car business turned around before it runs low on cash. Vehicle sales in the United States, running at a rate of less than ten million a year, may not recover fast enough to assure that Ford has a future that does not include raising more money.

Ford had a pleasant surprise for the markets this morning as it earned 69 cents a share in the second quarter on $27.2 billion in revenue. Sales dropped from $41.1 billion in the same period a year ago. With debt restructuring costs backed out, Ford's operating loss was $638 million or a loss of 21 cents per share. In the same period a year ago, Ford lost $1.4 billion or 21 cents a share. Results bested Wall Street's estimates.