Ford today reported a net loss of 7 cents per share, or $123 million, for the second quarter of 2006. This compares with net profit of 47 cents per share, or $946 million, in the second quarter of 2005. Ford’s second-quarter loss from continuing operations, excluding special items, was 3 cents per share, or $48 million, compared with a profit of 47 cents per share, or $936 million, in the same period a year ago. Ford’s second-quarter total sales and revenue was $42 billion, down $2.5 billion from a year ago. In the second quarter, Ford’s North America automotive operations reported a pre-tax loss of $797 million, compared with a pre-tax loss of $907 million a year ago. The improvement is more than explained by cost reductions in most areas of the business, partially offset by a mix shift from trucks to passenger cars, higher incentives and adverse foreign currency exchange. Sales were $19.2 billion, down from $19.9 billion for the same period a year ago.
Executive Vice President and Chief Financial Officer Don Leclair said, “Although we’ve made progress on a number of fronts, clearly we have more to do. This includes maintaining our focus on improving our quality, reducing our costs and maintaining our strong liquidity as we respond to the tougher operating environment we face.”
“We’ve seen an improvement in North America results in the second quarter, but the external factors we face aren’t going to get any easier,” said Chairman and Chief Executive Officer Bill Ford. “Mark Fields (executive vice president and president – The Americas) and his team have been working on plans to accelerate their efforts. Within the next 60 days, we’ll be in a position to discuss the additional actions we will be taking.”
PAG reported a pre-tax loss of $162 million for the second quarter, compared with a pre-tax profit of $17 million for the same period in 2005. The decline is more than explained by the impact of the expiration of favorable hedges that were put in place in previous years, adjustments to warranty accruals for prior models, and lower market share at Volvo in advance of new model introductions. These factors were partially offset by favorable product and market mix, driven largely by the success of new products at Land Rover, Jaguar and Aston Martin. Second-quarter sales for PAG were $7.8 billion, compared with $7.9 billion a year ago.
North America third-quarter production is projected at 670,000 units, down 58,000 units on a year-over-year basis, and 40,000 units less than what was previously announced. This change from the prior level is more than explained by lower truck production, reflecting our intention to maintain appropriate dealer inventory levels. Ford Europe production is projected at 410,000 units, up 38,000 units from last year, primarily reflecting the timing of vacation shutdowns. PAG production is projected at 150,000 units, down 3,000 units from last year.
07/20, 8:42 AM
posted by:
GMrules
Nobody’s buying Fords anymore because they’re tired of repairing them.
Found On Road Dead
07/20, 8:44 AM
posted by:
SliK
For the first time, I actually agree with GMrules. Ford has a lot of problem and losing a lot of money will not help them making more reliable cars. But they still sold for 19.2 billions which is a huge amount of cars.
07/20, 9:17 AM
posted by:
David Snitchnhinger
Hahahaha oh wow, Americans!
07/20, 9:44 AM
posted by:
Darren
The reason for this is Ford does not have new products/just putting new grille…in 2007 there is new crossover Edge, but I quickly buy its twin mazda cx-7,better styling.Fusion is good car, but new camry is much better, looks luxury. Focus is already 7yrs old & honda fit is much better, cheaper even though is 5 yrs old in Asia. 500/Freestyle/Freestar/Explorer all have better choice!Lincoln MKZ is good, but I prefer Lexus IS so who will buy Ford
07/20, 9:47 AM
posted by:
British_rover
PAG sales volume and profit should rebound by this time next year as there are a couple of new models being introduced by Volovo and Land Rover.
07/20, 10:08 AM
posted by:
Atomicbri
I don’t think PAG will be any issue for Ford since new LandRovers, Volvos and a new Jag are in sight. However Ford needs to get their act together within their own company. Mainly I think the lack of a new Focus (or lack of focus) is a big issue. I know if done right they could sell quite a bit of them. The new Focus in all other markets is doing well and they just brought out that convertible version. I think Ford thinks Americans are either dumb or do not have internet access….we know you cheated us! As for Lincoln, there is no strategy. GM finally has Cadillac on track, yet Lincoln still flounders, relying too much on the SUV and rebadged Fords. If Cadillacs are rebadged I can not tell, and I am not sure which are ( I know the XLR is based off the ‘Vette and the Escalade is a Tahoe) But you can immediately tell the MKS is a Fusion and the MK Whatever is the Edge. Ford needs to take a page from their own PAG… You can’t tell the Mazda3 shares itself with the Volvo S40 and the Euro Focus. All of those vehicles are great in their own respect.
07/20, 10:36 AM
posted by:
Camron
Hahahahahahahaha
07/20, 11:15 AM
posted by:
Alphard
hahahaha…good luck Ford. Wonder that will happen to GM anytime soon.
07/20, 11:15 AM
posted by:
Alphard
hahahaha…good luck Ford. Wonder that will happen to GM anytime soon.
07/20, 11:29 AM
posted by:
Nick
You know what I think Ford should do, stop selling Ford cars here. Overseas, Ford is profitable. Here, they can sell trucks, but not cars. Maybe Ford should become to FoMoCo, what GMC brand is to General Motor, just sell trucks, suvs, and the occasional cross over. Then they could trim down their models and trim costs. They could keep the Lincoln and Mercury brands and sell their cars that way. Actually, they could bring their European lineup here through those brands. They keep saying that bringing Euro cars here will cost too much, and no one will pay that much for a Ford. Yeah, that’s true, but they might pay that much for a Mercury or a Lincoln. I’ve always liked Fords, but am not liking where to company is going. Hopefully, if it goes sour, they get rid of the PAG and Mazda so those companies don’t go down as well (especially Mazda).
07/20, 1:29 PM
posted by:
Carnut4ever
What Ford needs to do is to sort out the boring designs that are coming out (500, Freestyle, Fusion)and scrap that SUV-Truck-like derivative styling. It surely works on trucks but it makes cars look dated. Ford Retro designs are cool(Mustang, GT) but they should not go overboard with it. Looks like GM is finally getting the message of better styling but not Ford. Even if Ford declares that it will go for better designs to come out, it will still take a lot of time bring out updated models to shore up its bottom line and market share.
07/20, 2:01 PM
posted by:
bigjob
ohhh #1….that was creative!! Wonder why I have never heard that one…..d*nk!!
07/20, 2:43 PM
posted by:
VDub
Ford’s cars car crap and if they do decide to stop selling cars in america then they’ll have to rely only on their SUVs and trucks. With soaring gas prices and the congressional mandate to get 40mpg in all SUVs in 10 years it seems like ford is in deep ****.
07/20, 8:17 PM
posted by:
SliK
The problem with pick-up is that most of people who buys them don’t tow anything so for them it’s just a huge amount of money wasted by the gas price. And yes Ford produce good pick-up but for every other cars they make…well it’s not.
07/21, 6:51 AM
posted by:
1c3d0g
Well then that’s not really Ford’s problem, now is it? I mean, I know plenty of people who *do* haul cargo and stuff, pull their trailer etc. with their pick-ups. I really don’t think Ford should get the blame for Euro-trash wannabe tough guys who buy a pick-up (just for the image) and are afraid of going through mud with it. :-/