Ford today reported a net loss of $1.2 billion for the first quarter of 2006. This compares with net income of $1.2 billion in the first quarter of 2005. Excluding one-time “special items,” Ford’s first-quarter earnings from continuing operations was $458 million. Ford’s total sales and revenue in the first quarter was $41.1 billion, down $4.1 billion from a year ago. Special items include a $1.7 billion charge related to layoffs, jobs bank benefits, and voluntary termination packages. Other special items include a $414 million charge for non-cash pension curtailment charges, and a $95 million cost for other personnel reduction programs. Looking strictly at the company’s vehicle sales, worldwide Automotive sector losses in the first quarter were $184 million. This compares with a profit of $580 million during the same period a year ago (excluding special items). “Special items” last year were just $107 million. Worldwide automotive sales for the first quarter declined to $37.0 billion from $39.3 billion. Worldwide vehicle unit sales in the quarter were 1,722,000, up from 1,716,000 a year ago.

In North America, Ford’s automotive operations reported a pre-tax loss of $457 million, excluding special items, compared with a pre-tax profit of $664 million, excluding special items, a year ago.

The combined first-quarter automotive pre-tax profit, excluding special items, for Ford Europe and PAG automotive operations was $254 million, an improvement of $250 million from the same period a year ago.

Premier Automotive Group (PAG): PAG reported a pre-tax profit, excluding special items, of $163 million for the first quarter, compared with a pre-tax loss of $55 million for the same period in 2005. The improvement primarily reflected cost improvements at Volvo, Jaguar, and Land Rover and increased sales of Range Rover Sport, contributing to improved mix.

Mazda: During the first quarter of 2006, Ford’s share of Mazda profits and associated operations was $45 million, compared with $54 million during the same period a year ago. The decline primarily reflected lower gains during the quarter on Ford’s investment in Mazda’s convertible bonds. All of these bonds have now been converted to equity.

    Print This Post