Ford Lost $1.2 Billion in Quarter
04-21-2006 | 08:43 AM
#1
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Joined: Jul 2001
Posts: 24,416
From: Stuart, FL
Ford (F:NYSE - commentary - research - Cramer's Take) swung to a wide first-quarter loss as charges to cover the automaker's varied restructuring initiatives whacked the bottom line. Sales fell, the company said Friday, and market share and unit volume shrunk in North America.
Ford lost $1.19 billion, or 64 cents a share, in the quarter, compared with earnings of $1.21 billion, or 60 cents a share, last year. The latest quarter had pretax charges of about $2.47 billion to cover layoffs, pension curtailments, plant closings and other issues. Before those, Ford earned 24 cents a share in the most recent quarter.
Analysts surveyed by Thomson First Call had been forecasting earnings of 25 cents a share in the quarter.
Total sales fell to $41.06 billion, from $45.14 billion last year, reflecting a decline in automotive sales to $36.99 billion, from $39.33 billion, and a fall in financial services revenue to $4.07 billion from $5.80 billion. Analysts had been forecasting sales of $39.67 billion.
Ford's North American operations lost a pretax $457 million before special items in the quarter, compared with a pretax profit of $664 million a year ago, while sales were$19.8 billion, down from $21.1 billion.
"The deterioration primarily reflected lower volumes associated with lower market share and a smaller increase in dealer inventories; increased incentives associated with a higher mix of leasing and fleet sales; the non- recurrence of favorable warranty reserve adjustments; acceleration of depreciation charges associated with announced plant idlings; adverse currency exchange; and losses associated with ACH, the former Visteon activities now controlled by Ford," the company said.
The North American performance led Ford's worldwide automotive operations to report a pretax loss of $184 million before items in the first quarter, reversing a year-ago profit of $580 million. Worldwide vehicle sales units in the first quarter were 1,722,000, up from 1,716,000 a year ago.
Ford lost $1.19 billion, or 64 cents a share, in the quarter, compared with earnings of $1.21 billion, or 60 cents a share, last year. The latest quarter had pretax charges of about $2.47 billion to cover layoffs, pension curtailments, plant closings and other issues. Before those, Ford earned 24 cents a share in the most recent quarter.
Analysts surveyed by Thomson First Call had been forecasting earnings of 25 cents a share in the quarter.
Total sales fell to $41.06 billion, from $45.14 billion last year, reflecting a decline in automotive sales to $36.99 billion, from $39.33 billion, and a fall in financial services revenue to $4.07 billion from $5.80 billion. Analysts had been forecasting sales of $39.67 billion.
Ford's North American operations lost a pretax $457 million before special items in the quarter, compared with a pretax profit of $664 million a year ago, while sales were$19.8 billion, down from $21.1 billion.
"The deterioration primarily reflected lower volumes associated with lower market share and a smaller increase in dealer inventories; increased incentives associated with a higher mix of leasing and fleet sales; the non- recurrence of favorable warranty reserve adjustments; acceleration of depreciation charges associated with announced plant idlings; adverse currency exchange; and losses associated with ACH, the former Visteon activities now controlled by Ford," the company said.
The North American performance led Ford's worldwide automotive operations to report a pretax loss of $184 million before items in the first quarter, reversing a year-ago profit of $580 million. Worldwide vehicle sales units in the first quarter were 1,722,000, up from 1,716,000 a year ago.
04-21-2006 | 01:51 PM
#7
Senior Member
Joined: Nov 2005
Posts: 222
From: Greenville / Sanford, NC
iirc, most of ford's losses are coming from NA. there's a lack of innovation here that's taking its toll on their sales. i love ford's AU division of FPV, offering nice rides like the typhoon.
but i wouldn't put mazda on such a high horse. it looks like they're trying harder and harder to accomidate to everyone on the market, and that hurt them last time (look at 90's 626, etc, removal of the rx7 from everywhere but japan)
but i wouldn't put mazda on such a high horse. it looks like they're trying harder and harder to accomidate to everyone on the market, and that hurt them last time (look at 90's 626, etc, removal of the rx7 from everywhere but japan)
