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View Full Version : Largest quarterly loss in 14 years?


Steve
10-23-2006, 04:26 PM
What's your take on this? I know we have a bunch of friends on here from the Michigan area. What's your view? Is this the bottom? Is Ford ready to rebound or is the worse yet to come?

Ford's net loss widens to $5.8B (http://money.cnn.com/2006/10/23/news/companies/ford/index.htm?postversion=2006102311) - Ford said on Monday that its net loss widened to $5.8 billion in the third quarter - its worst quarterly performance in 14 years - as it took a hit from costs related to the restructuring of its key North American business.

The last time Ford posted a loss this big was in the first quarter of 1992, when it reported a net loss of $6.7 billion.

On a per-share basis, the company reported a net loss of $3.08 a share in the third quarter. In the year-ago period, it posted a net loss of $284 million, or 15 cents a share.

Ford also said it would restate its financial results from 2001 through the second quarter of 2006 due to a change in accounting of derivatives contracts.

New chief executive Alan Mulally called the results "unacceptable," but said Ford was committed to creating a viable business going forward.

tiedeman
10-23-2006, 06:18 PM
I saw that on the news today...but did you also see that they want to cut more jobs by 2007-08

Steve
10-23-2006, 10:46 PM
I didn't see that part.

Do you ever wonder if they will be purchased by another company or become part of a merger?

tiedeman
10-23-2006, 11:10 PM
This is from the New York Times:

"Ford already has put a British maker of luxury cars, Aston Martin, up for sale and is believed to be seeking buyers for its other British marques, Land Rover and Jaguar. It has begun a restructuring plan, called the Way Forward, which includes more than 40,000 job cuts and a dozen or more plant closings through 2008."

Steve
10-24-2006, 12:41 AM
Well I guess if their domestic ship is sinking, why not sell the foreign firms to raise cash and focus on their main brand?

John/Logo-Mechanix
10-25-2006, 09:17 AM
My thinking is Ford needs to come up with better designs, I mean I like the Mustang and their trucks but most of their designs are rather stale. Look at Chrysler for instance, the PT Cruiser, Charger, Dodge Dakota and Rams, Grand Caravan etc... I see many more of these on the raod.

tiedeman
10-25-2006, 03:35 PM
I feel that automakers need to stop worrying about all of the bells and whistles with the vehicles and concentrate on two things
1. Gas mileage (better gas mileage or alternative fuel vehicles)
2. Longtivity (vehicles that last 10+ years without having to need a new engine, new transmission, etc)

Steve
10-25-2006, 04:01 PM
I agree with that totally.