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Ford Loses $1.2B As Restructuring Begins



 
 
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  #1  
Old April 21st 06, 03:29 PM posted to alt.autos.ford,rec.autos.makers.ford.mustang
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Default Ford Loses $1.2B As Restructuring Begins

4/21/06

(AP) Ford Motor Co. said Friday it lost $1.2 billion in the first quarter,
its worst performance in more than four years, as revenues fell and the
nation's second-biggest automaker started a massive and costly North
American restructuring effort.

Its shares fell more than 3 percent in early trading.

The loss of 64 cents per share for the January-March period compares to a
profit of $1.2 billion, or 60 cents per share, a year earlier. Sales fell 9
percent to $41.1 billion from $45.1 billion a year ago.

Ford said its results included a pretax charge of $1.7 billion, or 61 cents
per share, for costs associated with its Way Forward restructuring plan,
which calls for cutting up to 30,000 jobs and closing 14 facilities by 2012.
The charge includes the costs of layoffs and buyouts and pay for hourly
workers whose plants have been idled.

Excluding one-time special items such as restructuring charges, Ford said it
earned $458 million, or 24 cents per share.

It was Ford's worst quarterly performance since the fourth quarter of 2001,
when the company posted a $5.07 billion loss due to $4.1 billion in costs
for a previous restructuring plan. In the first quarter of 2002, Ford posted
a $1.1 billion loss.

Ford's North American automotive unit, which has been struggling with
declining sales and high fixed costs, reported a pretax loss of $2.9 billion
in the first quarter, including one-time items. Ford said that was primarily
due to lower sales, increased incentives, acceleration of charges related to
plant closings and losses at former Visteon Corp. plants now under the
control of a Ford-managed entity.

Worldwide, Ford's automotive operations lost $2.7 billion before taxes,
compared with a profit of $473 million a year ago. That included $2.5
billion in one-time special items such as restructuring charges. Ford sold
1.7 million vehicles worldwide, up 3 percent from a year ago.

Ford's financial arm, Ford Motor Credit Co., earned $479 million for the
quarter, down 33 percent from $710 million a year ago. The division said
higher borrowing costs due to Ford's junk credit rating was partly to blame.

"While we are not satisfied with our performance, particularly a loss in
North America automotive, we are encouraged by the success in our global
operations and at the Ford Motor Credit Company," Chairman and Chief
Executive Bill Ford said in a statement. "We have said we intend to restore
automotive profitability in North America by no later than 2008 and we
remain committed to deliver on our promise."

Ford shares dropped 29 cents, or 3.7 percent, to $7.66 in early trading on
the New York Stock Exchange, approaching their 52-week low of $7.11.

The Dearborn-based automaker's results were in stark contrast to its bigger
crosstown rival General Motors Corp., which reported record quarterly
revenues and a smaller loss for the quarter on Thursday. GM lost $323
million for the quarter versus a loss of $1.3 billion the previous year. GM
has begun its own North American restructuring after losing $10.6 billion
last year.

Bill Ford said Ford is in the very early stages of a dramatic change.

"This transformation isn't going to be quick and it isn't going to be
painless," he said. "It involves risks and the financial rewards won't be
immediate. But in the end, I believe we'll get there."

Yet another $.02 worth from a proud owner of a 1970 Mach 1 351C @
http://community.webshots.com/album/18644819fHAehGJAjt




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  #2  
Old April 22nd 06, 04:26 AM posted to alt.autos.ford,rec.autos.makers.ford.mustang
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Posts: n/a
Default Ford Loses $1.2B As Restructuring Begins

But how much did Mr Ford, other members of the board of directors, and
senior company officials get paid in hard and soft money last year while
Ford was spiraling down hill?

Don't get me wrong, I like the idea of a Ford in charge of Ford. He
seems to have his heart in the right place, especially in comparison to
his predecessor, but the company is bleeding money and Americans are
about to loose jobs.

It is time for a reality check when it comes to executives salaries. A
fair base salary for the level of effort expected should be expected, on
top of that should be a bonus tied directly to the performance of the
company. If the company has a banner year, they should make X million
dollars. If the company announces a 1.2 BILLION writeoff, they should not.

KAM.
Ford stock holder
2005 Ford Explorer EB
1999 Ford Expedition
1989 Ford Mustang LX5.0
1972 Ford Gran Torino Sport
(See a pattern here?)

Grover C. McCoury III wrote:
> 4/21/06
>
> (AP) Ford Motor Co. said Friday it lost $1.2 billion in the first quarter,
> its worst performance in more than four years, as revenues fell and the
> nation's second-biggest automaker started a massive and costly North
> American restructuring effort.
>
> Its shares fell more than 3 percent in early trading.
>
> The loss of 64 cents per share for the January-March period compares to a
> profit of $1.2 billion, or 60 cents per share, a year earlier. Sales fell 9
> percent to $41.1 billion from $45.1 billion a year ago.
>
> Ford said its results included a pretax charge of $1.7 billion, or 61 cents
> per share, for costs associated with its Way Forward restructuring plan,
> which calls for cutting up to 30,000 jobs and closing 14 facilities by 2012.
> The charge includes the costs of layoffs and buyouts and pay for hourly
> workers whose plants have been idled.
>
> Excluding one-time special items such as restructuring charges, Ford said it
> earned $458 million, or 24 cents per share.
>
> It was Ford's worst quarterly performance since the fourth quarter of 2001,
> when the company posted a $5.07 billion loss due to $4.1 billion in costs
> for a previous restructuring plan. In the first quarter of 2002, Ford posted
> a $1.1 billion loss.
>
> Ford's North American automotive unit, which has been struggling with
> declining sales and high fixed costs, reported a pretax loss of $2.9 billion
> in the first quarter, including one-time items. Ford said that was primarily
> due to lower sales, increased incentives, acceleration of charges related to
> plant closings and losses at former Visteon Corp. plants now under the
> control of a Ford-managed entity.
>
> Worldwide, Ford's automotive operations lost $2.7 billion before taxes,
> compared with a profit of $473 million a year ago. That included $2.5
> billion in one-time special items such as restructuring charges. Ford sold
> 1.7 million vehicles worldwide, up 3 percent from a year ago.
>
> Ford's financial arm, Ford Motor Credit Co., earned $479 million for the
> quarter, down 33 percent from $710 million a year ago. The division said
> higher borrowing costs due to Ford's junk credit rating was partly to blame.
>
> "While we are not satisfied with our performance, particularly a loss in
> North America automotive, we are encouraged by the success in our global
> operations and at the Ford Motor Credit Company," Chairman and Chief
> Executive Bill Ford said in a statement. "We have said we intend to restore
> automotive profitability in North America by no later than 2008 and we
> remain committed to deliver on our promise."
>
> Ford shares dropped 29 cents, or 3.7 percent, to $7.66 in early trading on
> the New York Stock Exchange, approaching their 52-week low of $7.11.
>
> The Dearborn-based automaker's results were in stark contrast to its bigger
> crosstown rival General Motors Corp., which reported record quarterly
> revenues and a smaller loss for the quarter on Thursday. GM lost $323
> million for the quarter versus a loss of $1.3 billion the previous year. GM
> has begun its own North American restructuring after losing $10.6 billion
> last year.
>
> Bill Ford said Ford is in the very early stages of a dramatic change.
>
> "This transformation isn't going to be quick and it isn't going to be
> painless," he said. "It involves risks and the financial rewards won't be
> immediate. But in the end, I believe we'll get there."
>
> Yet another $.02 worth from a proud owner of a 1970 Mach 1 351C @
> http://community.webshots.com/album/18644819fHAehGJAjt
>
>
>
>

 




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