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Ford Reports Huge Loss
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Posted by: MCRPARTS

Soaring gasoline prices have caused a lot of pain to drivers -- and to Ford Motor (F, news, msgs), which got slammed in the second quarter.
This morning, the U.S. automaker reported a whopping loss of $8.7 billion, or $3.88 per share, as more consumers shifted away from sport-utility vehicles and trucks to smaller, more fuel-efficient cars. Excluding items, Ford lost $1 billion, or 62 cents per share, worse than analysts' expectations of a 28-cent per-share loss.
Shares of Ford fell 60 cents, or 10%, to $5.43 this morning.
More broadly, stocks fell in morning trading on a slew of earnings news and disappointing data. At 11:20 a.m. ET, the Dow Jones Industrial Average was down 126 points to 11,506. The Nasdaq Composite Index was down 22 points to 2,304, and the Standard & Poor's 500 Index had shed 9 points to 1,273.

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Ford reported a profit of $750 million, or 31 cents per share, last year.
"This is going to be an extremely painful year," said Mirko Mikelic, a senior portfolio manager at Fifth Third Asset Management, to Bloomberg News. "The F-150 is really where they've made money for years, and that's gone." Sales of the F-Series trucks fell 31% in the quarter, to 126,575.
The automaker wrote down assets of $5.3 billion for its auto business and $2.1 billion on leases at Ford Motor Credit.
"The second half will continue to be challenging, but we have absolutely the right plan to respond to the changing business environment and begin to grow for the long term," said Chief Executive Officer Alan Mulally in a statement.
The company said it will delay the launch of the newly designed F-150 pickup truck, once the all-time best-selling vehicle in the U.S. Ford also said it will convert three truck plants in the U.S. to make fuel-efficient cars and that it will double hybrid production by next year. "We continue to take decisive action in response to the rapidly changing business environment and remain absolutely committed to our business transformation plan," Mulally said.
"I think grim is being optimistic for the company," Wall Street Strategies analyst David Silver said to MarketWatch. "Right after the first quarter earnings release there was all this talk about Ford really turning the corner, but all of Detroit seems to still be dragging their feet with this restructuring."

Posted by: Dark_Cobra

I heard Toyota is thinking of buying them before X-Mas. Shelby TRD on the way..

Jim G hates me

Posted by: langod

Actually -- the news is not the "huge loss" -- everyone expected that. What IS news is the total revamp of Fords product line. By the end of this year, 70% of Ford's US products will be new models compared to it's 2006 lineup. And by 2010, it will be 100% new product.

They are increasing production of their current smaller vehicles, bringing over the European Ford Focus models and slowing production of their full-size trucks and SUVs.

This is actually a GOOD thing. As opposed to GM which is just wallowing in debt without a decent escape plan, Ford has already reformulated their strategy and may well end up being the Strongest of the Big 3 in the near future. Possibly even the sole independent survivor.

More details here: http://www.themustangnews.com/fomoco...608ford126.htm

And an opinion piece here: http://www.autoextremist.com (this article will only stay in place till next wednesday (7-31-08), when the new column comes out.)

Posted by: chachee52

When is the Aspire coming back? I heard that it was supposed to be coming over late this year.

Posted by: TorchRedSVT

not a huge shocker right there

Posted by: Dark_Cobra

What chassis is the Explorer going to be redesigned on ??

The Escape or the reintroduced Pinto ?

Posted by: bullitt5177

Quote:

Originally Posted by chachee52

When is the Aspire coming back? I heard that it was supposed to be coming over late this year.

Jesus!! Who the hell wants that to happen??

Ford is really shifting their status in the market, and making lots of new vehicles that are pretty interesting. I'm not worried, and my career somewhat relies on their success.

Posted by: Dark_Cobra

Another strange side to this Ford issue.. A complete dealership down our way mysteriously vanished a few weeks back.. Pride Ford N.Attleboro just packed up shop and left nothing behind but a Ford sign and an empty lot (all went down in just a few days).. I don't even see furniture in the showroom windows anymore...

I guess they could not sell that 07 Shelby for 67k and the rest was just a front...