Ford posts quarterly net loss of $284m
Thursday, 20 October 2005Ford Motor Company today reported a third-quarter net loss of $284m, citing a 'difficult environment' in the car industry, especially in North America.
The loss from continuing operations amounted to $191m. That translates to 10 cents per share, a cent worse than expected on Wall Street. Sales rose 4.6% from the same time last year to $40.9 billion.
The number-two US carmaker forecast 2005 earnings before special items at the low end of its current guidance range of $1-1.25 a share.
Ford said its North American automotive operations accounted for a pre-tax loss of $1.2 billion, a decline of $685m from a year earlier. It cited 'lower dealer inventories, unfavourable vehicle mix, lower net pricing and higher warranty and material costs' that weighed on results.
'As our results indicate, we face many challenges in this competitive and difficult environment,' chairman and chief executive Bill Ford said.
'We have demonstrated throughout the year that we will continue to take the actions necessary to return our core business to sustainable profitability. We understand the issues, our priorities, and have the right team in place to get the job done,' he added.
Ford has seen its market share dwindle in recent years, with its most profitable lineup of sport utility vehicles plunging 51% last month. The company's employee-pricing plan provided a short-lived blip in the decline this summer as customers flocked to dealerships to take advantage of the sales craze first triggered by rival General Motors.
