HOME | FORUMS | REGISTER |

This is the MCRParts.com archive. To get back to our main site, please follow this link: Ford Mustang

Pages: 1

Fords Deepest Lost In 103yr History
(Click here to view the original thread with full colors/images)

Posted by: MCRPARTS

DEARBORN, Mich. - Ford Motor Co. lost $5.8 billion in the fourth quarter amid slumping sales and huge restructuring costs, pushing the fabled automaker’s deficit for the year to $12.7 billion, the largest in its 103-year history.
The annual loss reported Thursday surpassed its previous record for a year of $7.39 billion set in 1992. The 2006 loss amounted to of $6.79 per share versus a profit of $1.44 billion, or 77 cents a share, in 2005.
The Dearborn-based company expects more losses for this year. It expects to burn up $10 billion in cash on automotive operations through 2009 and spend another $7 billion to invest in new products.

The fourth-quarter loss was the worst final-quarter loss in Ford’s history and its second-worst quarterly performance. Ford lost $6.7 billion in the first quarter of 1992, due mainly to accounting rule changes on health care liabilities.
“We began aggressive actions in 2006 to restructure our automotive business so we can operate profitably at lower volumes with a product mix that better reflects consumer demand for smaller, more fuel-efficient vehicles,” Alan Mulally, president and chief executive officer, said in a statement. “We fully recognize our business reality and are dealing with it. We have a plan and are on track to deliver.”
Excluding special items, Ford lost $1.50 per share in all of 2006, worse than Wall Street predicted. Fourteen analysts polled by Thomson Financial expected a loss of $1.35 per share for the year, excluding special items.
Ford, faced with increasing competition from overseas rivals such as Toyota Motor Corp., is banking on a restructuring plan to pull it through this rough stretch. Mulally, hired from aerospace giant Boeing Co., is leading the drastic efforts to turn around the company.
Ford mortgaged its assets to borrow up to $23.4 billion to pay for the restructuring and to cover losses expected until 2009. About 38,000 hourly workers have signed up for buyout or early retirement offers from the company, and Ford plans to cut its white-collar work force by 14,000 with buyouts and early retirements.
Ford, which relied on truck and sport utility vehicle sales for much of its profits, was hurt last year as $3 per gallon gasoline sent consumers fleeing to smaller, more fuel-efficient vehicles. Ford has seen its market share deteriorate in recent years. At the same time, Toyota has seen its U.S. sales rise, beating Ford out for the No. 2 sales spot in July and November.
The company has rolled out or will introduce several new or updated products during 2007, including the Edge crossover, new F-series Super Duty pickups, a redesigned Focus small car and an updated Five Hundred larger sedan.
But many analysts are skeptical that the products are strong enough to turn the company around

Posted by: Aussie XAXB

....and their stock STILL went UP!!!

Go figure.

Steve

Posted by: awwyea

Quote:

Originally Posted by Aussie XAXB

....and their stock STILL went UP!!!

Go figure.

Steve

That's because they pay themselves before they pay their employees...

Posted by: Rick Sample

That's what I heard... all over the news.

Posted by: Aussie XAXB

Quote:

Originally Posted by awwyea

That's because they pay themselves before they pay their employees...

If it was based on paying themsleves the value would have dropped due to the $6.79 per share loss. On the Stock Market it traded higher until about today. Also the number of shares traded since the announcement was DRASTICALLY reduced, by tens of millions per day.

Steve