Quote:Ford Posts Worst Loss in Its History
Jan 25, 8:55 AM (ET)
By TOM KRISHER
DEARBORN, Mich. (AP) - Ford Motor Co. (FPA) 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.
Its shares rose 4 cents to $8.24 in premarket trading.
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. (BA), 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.
Mulally said earlier this month that Ford's restructuring plan remained "absolutely the right thing to do."
Ford said that special items associated with restructuring costs totaled $9.9 billion for the year as the company continues efforts to shrink itself to match reduced demand for its cars and trucks.
Sales for the fourth-quarter fell to $40.3 billion from $46.3 billion a year ago, while annual sales dropped to $160.1 billion from $176.9 billion in 2005.
See, here's the thing - if your quarterly sales total $40 billion dollars and you're NOT profitable... and your annual sales are $160 billion and you're NOT profitable, something greater is at work here.
They've got a lot of work to do, and part of it starts with bolting down some of those ridiculous amounts of pension and incentives that they have right now.
Bitch all you want, but it's true.
They will recover, just need to be patient...Nissan did it several years ago...they came back from the brink to being a company that builds vehicles that people really like, and Ford will do the same.
I think they FINALLY clued in, that they need to be worried less about making a profit in the shorterm, and make things happen so that they will be profitable in the longrun. Keep making vehicles like the Focus, Mustang, Fusion, etc, and they will succeed.
Ford keeps relying on big trucks and SUV's ?? I know they have got the msg but ........... you have to scale back production of these "white elephants" Nobody is buying these pigs anymore !! Bottom line is the product that's in the showroom is NOT attracting people !! Back to the drawing board Ford !!
Crhysler was in the same boat 15 years ago.
Then they launched the LS series of cars that included the Intrepid.
For some reason though, I'm not sure the Fusion has what it takes to save the breed.
Y'know, I'm still not seeing that Ford really has "gotten the message" when it comes to their product mix. I still see at least in the US a heavy reliance on pushing the truck product line and frankly Ford's truck line up is at a serious competitive disadvantage compared to its rivals because of what they don't offer.
Couple that with the fact that Ford USA refuses to wake up and smell the java and finally kill off the Mercury brand. I'm sorry but tarting up your products with some extra chrome and charging more for it will not cut it in the new reality.
Now in Canada they've gotten the message for the most part. They're pushing the smaller cars in their ads and focusing on things that they offer that their competition doesn't (Fusion AWD as an example)
I'd be more optimistic for Ford if the people in charge of the CAnadian operations were transplanted to the US and given free reign to run the company like they do up here...
NefCanuck
Bring the V8 RWD cars from Australia here, the economy cars from Europe here, and people will buy them. Makes no sense to have vehicles that are speciffic to certain places...the need to do that is gone. If they made the same vehicles for everywhere, they'd spend less time on tooling and in the pre production stages.
EDITED - lost my train of thought... slightly derailed.
Whats been written in that article is what Ive been posting here for the past 4 years ......
What cars does the Ford brand have to offer?:
Fusion , 500, Mustang, Focus, GT
500 is a bomb the focus is bombing and the Fusion is starting to pick up in sales, but is very slow at it, and ofcourse not everyone can afford a GT.
With trucks you have a great selection ..............to bad not everyone needs a truck and the people that do have one are trying to get rid of it, because of the high fuel prices.
We are hearing little rumours around the plant that in 2008 we may get a little car from europe.
Ka???
Fiesta?
I don't know.
Focus is pretty small too :)
meford4u,Jan 25 2007, 09:42 PM Wrote:We are hearing little rumours around the plant that in 2008 we may get a little car from europe.
Ka???
Fiesta?
I don't know.
[right][snapback]224607[/snapback][/right]
The Ka makes the most sense as it would fit right into the Yaris/Fit/Versa mold but from what I've seen of the Ka in Europe it looks like Ford gave the car a much nicer look (I'm sorry but the three Japanese microcars look like parodies of a car... I keep looking for the windup key :P )
NefCanuck
150BHP Fiesta would be a great "me" car and Sara could have the ZX5. Or... the other way around. I think the Ka is just too small... it'd almost be competing with the Smart ForTwo. In a gas format. Good for gas station availability at 2AM. Bad for superior miser numbers.
I'm pritty sure you guys have not seen the Ford Range in Europe Lately, if the more then likely did bring a small car here from there it would more then likely be the European Fusion 2 SUV that is the size of a Focus wagon and it's under the Mavrick / Escape in Europe, since Ford of America is all in the mind set of SUV / Truck are still hot!.
Ford Ka, yeah it's a good little micro compact, but the down side to it when you look at Americans, and Canadian's you see that the buying public is a large frame and too large for such a small car, as it is a 2 or 4 seater in Europe, by our standards it would be a 2 seater, with jumps seats in the hatch version for small kids. and the only real compition for it would be the Smart car, if they sold the Ka with the diesel engine only.
Ford Fiesta, it's a great car, and has been Europe & Asia's favorite Ford for over 30 years, and comes with things you'd find on the Lincoln brand, but it would cost what the focus would to sell it here. On the plus side to the Fiesta is it's already in North America, being sold in Mexico and built in South America. Down side to it is Ford USA would more then likely make it into the Ford Aspire from the 90's (European MK5 Escort)
Ford S-Max, Already a Hit in all Markets it's sold in and 70% of them sold are in the Titanium package, but if they did sell it here it would be the twin of the Mazda5.
these are responses i found to this topic in local "rude" ricer forum
Vitalmotion
NikiterZTS,Jan 26 2007, 10:52 PM Wrote:these are responses i found to this topic in local "rude" ricer forum
Vitalmotion
[right][snapback]224761[/snapback][/right]
I see you whore up useless posts there too.
NikiterZTS,Jan 26 2007, 11:52 PM Wrote:these are responses i found to this topic in local "rude" ricer forum
Vitalmotion
[right][snapback]224761[/snapback][/right]
It's like Chicago Bears fans knowing everything about football because their team is doing well...
A part of me wants to get upset about the comment about the commercial.. but then again, they
remember it, don't they?
meford4u,Jan 27 2007, 08:01 AM Wrote:NikiterZTS,Jan 26 2007, 10:52 PM Wrote:these are responses i found to this topic in local "rude" ricer forum
Vitalmotion
[right][snapback]224761[/snapback][/right]
I see you whore up useless posts there too.
[right][snapback]224774[/snapback][/right]
i do my best