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.
