Ford has recently reported a $750 million net profit for the second quarter despite the not-so-good performance of its products in the North American market. This is the first quarterly profit that the automaker obtained after almost two years of continuous losses.

Ford attributes its first quarterly profit to the cost-cutting measures that it has implemented and to the increased in sales of its higher-profit vehicles as well as the strong results of its products in the overseas markets. It also broke the string of seven straight quarterly losses. But Ford executives warned that it’s too early to celebrate.

According to Ford CEO Mulally the second half of the year would be difficult. He also said that the overall results for 2007 would be better than the previously forecasted but he prefers to stick to his prediction that the company will not return to full-year profitability until 2009.

The nation’s weak housing market adds to it the high commodity costs and the increasing prices of fuel are hurting the pickup truck sales which have been in the past Ford’s bread and butter.

The automaker is also facing a continuously declining sale in the US auto market as noted by David Healy, an analyst with Burnham Investment Research, who predicted that sales for this year will only result to around 16.7 million vehicles which is almost half-million below the normal rate.

Ford’s overseas operations have posted a collective 80 percent $600 million improvement for the second quarter. Ford North America remains a tough spot for Ford products.

Ford’s Way Forward turnaround plans focus on returning the automaker to profitability hopefully by 2009. Part of the turnaround plan is the closing down of 16 plants, cutting of 44,000 jobs and restructuring of the company’s lineup for Ford, Mercury the producer of Merkur catalytic converter, and Lincoln vehicles.

Ford has also reported that its US market share has increased by 15.6 percent in the first quarter up by 15.1 percent but fell from 16.7 percent as compared to the same period last year.

Mulally has also said that the Ford Edge which was introduced last fall has been particularly strong same with the sales of Ford Focus, Fusion, Taurus, and Escape models. Ford CEO further said that the company is now meeting with parties that are interested in buying the Jaguar and Land Rover brands which are part of the automaker’s Premier Auto Group. It can be noted that Aston Martin was sold earlier this year.

The controversial Volvo is still under review and will be decided upon at the end of this year said Mulally.

Tags: bread and butter, net profit, catalytic converter, automaker, overseas markets, million vehicles, auto market