Ford financial results – $5.8 billion lost from July to September 06 (Update-GM, DCX)
10-23-06, 08:23 AM
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Ford financial results – $5.8 billion lost from July to September 06 (Update-GM, DCX)
And the bad news continue for Ford Co. It is extremely sad how a company like Ford Co. has not been able to find the formula to turn things around. Management is the only one to blame right here.
Source: http://www.freep.com/apps/pbcs.dll/a...014/BUSINESS01
Source: http://www.freep.com/apps/pbcs.dll/a...014/BUSINESS01
Ford financial results 'clearly unacceptable'
October 23, 2006
By SARAH A. WEBSTER
FREE PRESS BUSINESS WRITER
The ailing Dearborn-based Ford Motor Co. today reported that it lost $5.8 billion, or $3.08 per share, during the July to September period this year.
Sales fell to $36.7 billion, down $4.1 billion from the same period a year ago. Last year during the same period, Ford posted a net loss of $284 million, or 15 cents per share.
For the year, Ford’s losses now total $7.2 billion, and it was unclear whether Ford’s full-year results might come close to or surpass General Motors Corp.’s $10.6 billion loss last year.
On a conference call with journalists and automotive analysts, Ford CEO Alan Mulally, who took his post at the beginning of the month, called the results “clearly unacceptable” and called this period a "critical time" for the company.
The company’s North American division, which manages the United States, Canada and Mexico, has long been the weight dragging Ford’s results down. Through the first half of the year, Ford posted a $1.4 billion loss, with $4 billion coming from that unit. But North America is no longer solely to blame.
The deep losses announced today were also caused by challenges in Asia Pacific, Africa and the Premier Automotive Group, which manages Volvo, Land Rover,
Jaguar and Aston Martin.
And as bad as the results were, they were also a cliffhanger. Ford also said today that it would restate its financial results for the past five years at a later date to correct the accounting for certain transactions. It was unclear how those changes might impact the company’s bottom line.
Ford is working aggressively on its revamped Way Forward turnaround plan, which calls for eliminating a cumulative 44,000 hourly and salaried jobs, closing 16 factories and making other changes by 2012.
Most of Ford’s losses in the quarter — $4.6 billion or $2.46 per share — were for special one-time charges, many related to that restructuring. Among the special charges:
• A net charge of $861 million for jobs bank benefits and employee separations directly related to plans to idle facilities in North America.
• A charge of $259 million associated with continued personnel reduction programs at facilities other than those identified for idling.
Ford’s current restructuring plan estimates Ford’s North American operations will be profitable again by 2009, and Mulally said, “These actions will lead to profitable growth of our business over the long term.”
Meanwhile, Ford still has plenty of cash for now. The automaker had $23.6 billion, including money in a fund for employee benefits, at the end of September. That is unchanged from the end of June.
Some automotive analysts expressed concern this morning that Ford will burn
through cash quickly as it restructures, asking questions about Ford's lines of credit and how little cash Ford might feel comfortable with going forward.
However, Don Leclair, Ford’s chief financial officer, said that maintaining strong liquidity will continue to be a high priority, so the company can have a cushion.
JP Morgan automotive analyst Himanshu Patel said he still thinks Ford will miss its year-end cash projection of $20 billion. He expects the company to be $1 billion short of that mark. He expected Wall Street to react negatively to Ford’s earnings results today, although they were largely in line with forecasts.
October 23, 2006
By SARAH A. WEBSTER
FREE PRESS BUSINESS WRITER
The ailing Dearborn-based Ford Motor Co. today reported that it lost $5.8 billion, or $3.08 per share, during the July to September period this year.
Sales fell to $36.7 billion, down $4.1 billion from the same period a year ago. Last year during the same period, Ford posted a net loss of $284 million, or 15 cents per share.
For the year, Ford’s losses now total $7.2 billion, and it was unclear whether Ford’s full-year results might come close to or surpass General Motors Corp.’s $10.6 billion loss last year.
On a conference call with journalists and automotive analysts, Ford CEO Alan Mulally, who took his post at the beginning of the month, called the results “clearly unacceptable” and called this period a "critical time" for the company.
The company’s North American division, which manages the United States, Canada and Mexico, has long been the weight dragging Ford’s results down. Through the first half of the year, Ford posted a $1.4 billion loss, with $4 billion coming from that unit. But North America is no longer solely to blame.
The deep losses announced today were also caused by challenges in Asia Pacific, Africa and the Premier Automotive Group, which manages Volvo, Land Rover,
Jaguar and Aston Martin.
And as bad as the results were, they were also a cliffhanger. Ford also said today that it would restate its financial results for the past five years at a later date to correct the accounting for certain transactions. It was unclear how those changes might impact the company’s bottom line.
Ford is working aggressively on its revamped Way Forward turnaround plan, which calls for eliminating a cumulative 44,000 hourly and salaried jobs, closing 16 factories and making other changes by 2012.
Most of Ford’s losses in the quarter — $4.6 billion or $2.46 per share — were for special one-time charges, many related to that restructuring. Among the special charges:
• A net charge of $861 million for jobs bank benefits and employee separations directly related to plans to idle facilities in North America.
• A charge of $259 million associated with continued personnel reduction programs at facilities other than those identified for idling.
Ford’s current restructuring plan estimates Ford’s North American operations will be profitable again by 2009, and Mulally said, “These actions will lead to profitable growth of our business over the long term.”
Meanwhile, Ford still has plenty of cash for now. The automaker had $23.6 billion, including money in a fund for employee benefits, at the end of September. That is unchanged from the end of June.
Some automotive analysts expressed concern this morning that Ford will burn
through cash quickly as it restructures, asking questions about Ford's lines of credit and how little cash Ford might feel comfortable with going forward.
However, Don Leclair, Ford’s chief financial officer, said that maintaining strong liquidity will continue to be a high priority, so the company can have a cushion.
JP Morgan automotive analyst Himanshu Patel said he still thinks Ford will miss its year-end cash projection of $20 billion. He expects the company to be $1 billion short of that mark. He expected Wall Street to react negatively to Ford’s earnings results today, although they were largely in line with forecasts.
10-26-06, 06:09 AM
#4
G35x - RWD/AWD goodness
Earnings: Motown Sees GM Improve, Chrysler Slump
Date posted: 10-25-2006
DETROIT — General Motors sharply cut its net loss in the third quarter — and actually posted an operating profit before one-time expenses — while the Chrysler Group's operating loss for the quarter pulled down net income for DaimlerChrysler.
GM's net loss for the quarter was $115 million, compared with a loss of $1.7 billion in the third quarter of 2005. The latest period includes a substantial write-down of $644 million, which means automotive operations actually made money. Total revenue rose 3.6 percent to $48.8 billion, from $47.1 billion a year earlier.
The giant automaker said it is still on track to slash $9 billion in operating costs this year, much of which will come through plant closings and employee buyouts.
Chrysler, meanwhile, had a miserable quarter, posting an operating loss of $1.46 billion, at the same time that its sister division, the Mercedes Car Group, rebounded to an operating profit of $1.25 billion.
Parent DaimlerChrysler had a group operating profit of $1.12 billion, although group net income fell to $680.1 million. Revenue dipped to $44.2 billion in the quarter, from $48.2 billion a year earlier.
What this means to you: Reading between the lines of the financial statements, GM appears to be on much firmer financial footing than it was a year ago, while Chrysler continues to bleed.
Source: http://www.edmunds.com/insideline/do...ticleId=117282
DETROIT — General Motors sharply cut its net loss in the third quarter — and actually posted an operating profit before one-time expenses — while the Chrysler Group's operating loss for the quarter pulled down net income for DaimlerChrysler.
GM's net loss for the quarter was $115 million, compared with a loss of $1.7 billion in the third quarter of 2005. The latest period includes a substantial write-down of $644 million, which means automotive operations actually made money. Total revenue rose 3.6 percent to $48.8 billion, from $47.1 billion a year earlier.
The giant automaker said it is still on track to slash $9 billion in operating costs this year, much of which will come through plant closings and employee buyouts.
Chrysler, meanwhile, had a miserable quarter, posting an operating loss of $1.46 billion, at the same time that its sister division, the Mercedes Car Group, rebounded to an operating profit of $1.25 billion.
Parent DaimlerChrysler had a group operating profit of $1.12 billion, although group net income fell to $680.1 million. Revenue dipped to $44.2 billion in the quarter, from $48.2 billion a year earlier.
What this means to you: Reading between the lines of the financial statements, GM appears to be on much firmer financial footing than it was a year ago, while Chrysler continues to bleed.
Source: http://www.edmunds.com/insideline/do...ticleId=117282
10-26-06, 07:26 PM
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poor MB?
MB as usual overestimated themselves and what they could do with Chrysler. MB should stick to overcharging for their cars and build SLR's and Maybach's to stroke their inflated egos.
Not to mention for a couple of yrs the two were on opposite ends in terms of finances. Did you feel sorry for Chrysler then?
The new LS460, RX, LX, and GX will put MB right back in the red. MB woes are far from over, I give them 1-2 more yrs of profitability.
MB as usual overestimated themselves and what they could do with Chrysler. MB should stick to overcharging for their cars and build SLR's and Maybach's to stroke their inflated egos.
Not to mention for a couple of yrs the two were on opposite ends in terms of finances. Did you feel sorry for Chrysler then?
The new LS460, RX, LX, and GX will put MB right back in the red. MB woes are far from over, I give them 1-2 more yrs of profitability.
10-26-06, 09:52 PM
#7
poor MB?
MB as usual overestimated themselves and what they could do with Chrysler. MB should stick to overcharging for their cars and build SLR's and Maybach's to stroke their inflated egos.
Not to mention for a couple of yrs the two were on opposite ends in terms of finances. Did you feel sorry for Chrysler then?
The new LS460, RX, LX, and GX will put MB right back in the red. MB woes are far from over, I give them 1-2 more yrs of profitability.
MB as usual overestimated themselves and what they could do with Chrysler. MB should stick to overcharging for their cars and build SLR's and Maybach's to stroke their inflated egos.
Not to mention for a couple of yrs the two were on opposite ends in terms of finances. Did you feel sorry for Chrysler then?
The new LS460, RX, LX, and GX will put MB right back in the red. MB woes are far from over, I give them 1-2 more yrs of profitability.
divorce is a good thing -- for mb
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