Ford CEO Mulally squelches rumors he is the next Microsoft chief
During a conference call detailing a third-quarter profit of $1.3 billion, Ford Motor Co. Chief Executive Alan Mulally said Thursday he plans to continue running the automaker, ending rumors he will be the next CEO of Microsoft Corp.
Mulally insisted there is no change in the automaker’s succession plan to have him continue as chief executive through the end of 2014.
Mulally, 68, has held the job at Ford since 2006, and is credited for guiding the automaker through the auto industry collapse of five years ago without seeking a federal government bailout.
A former Boeing Co. executive with deep ties to the Pacific Northwest, Mulally was reportedly courted by the Seattle-based software giant as a successor to its CEO Steve Ballmer, who said he would step down in less than a year.
Asked about whether he might trade Ford for Microsoft, Mulally said, “We have no plans to change. I love serving here at Ford.”
He declined to answer when a reporter asked whether Microsoft had approached him, saying only he would not address speculation.
Mulally may be staying at Ford because things are going well at the automaker. Its restructuring of its troubled European operations is starting to take hold, cutting losses there by about half in the third quarter. Sales are strong in North America, and Ford is starting to grow quickly in China. The company is now saying it will earn more than $8 billion this year, an upgrade from earlier guidance of profits at just $8 billion.
Ford said Thursday it earned $1.3 billion, down 22% from $1.6 billion in the same period a year ago.
However, the latest results include special charges of $498 million, including $250 million to cover the restructuring of its European operations, where Ford is closing factories and laying off workers. There also was a $145-million charge covering the automaker’s buyout of the pensions of some U.S. salaried retirees.
Without the charges, Ford posted an operating profit of $2.6 billion, a 20% increase from the same quarter a year earlier and a third-quarter record for the company.
“Across the Ford enterprise, we continue to restructure the business to operative profitably,” Mulally said. “2013 is on track to be another strong year for the Ford Motor Co.”
The company also reported revenue rose 12% to $33.9 billion.
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